Capital Raising / AGM Voting

It seems to me from reading the ASX guidelines on Capital Raising that resolutions 4 and 5 (ratification of previous share issues) are largely a moot point if ABU has no intention of raising capital short term.

Now, please feel free to correct me if I have interpreted the ASX guidelines incorrectly, but the effect on future issue of shares for resolution 4 in terms of restricting the ability of ABU to issue shares expires on or around end Feb 2016 regardless of whether this resolution is passed or not and for resolution 5, the expiry date would be end March 2016.

In effect this means that provided ABU have no intention of capital raising before early April 2016, both these resolutions are irrelevant since after that date they will again be able to issue up to 15% of shares without shareholder approval.

On the other hand, you could infer that since both these resolutions are included, that ABU fully intends to raise capital before then.

Now why would ABU want to do another Capital Raising given we are supposedly cash flow positive?

If it is for admin or general expenses, then a definite no from me.

For exploration / definition drilling, its a maybe from me. I would want to see proof that current mining is producing at least a significant profit on a cash basis and has certainty of operating on an AISC profit basis longer term before voting in favour of a CR for further exploration.

For acquisition of assets / tenements or for expanding processing facilities, building a haul road or a new plant etc, well thats a very different matter. Whether or not I would vote for it depends on whether management can provide a solid business case for it.

Proxy voting for the AGM closes at 2pm Perth time on 22nd November (a Sunday), so for those not attending the meeting, for all intents, proxy voting closes after close of trading this Friday, 20th November.

I hope management come out with a detailed update of operations before then so that I have a solid reason to change my voting intentions.

Don't forget to vote!