AVQ 0.00% 2.5¢ axiom mining limited

Chill!, page-15

  1. 8,619 Posts.
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    if you believe Axiom was forwarding cash to Axiom KB as debt. I doubt Axiom ever had cash to forward so could very well be from something else.
    Or Axiom did and they will call on it if they ever produce thereby screwing landholders of their cut as it would be used to repay this debt.

    As for your pre-payment query the thing to understand is Gunvor would prepay AFTER capex is spent and therefore would be assured of delivery.
    They pre-pay for ore which they have already pre-sold.
    Once you produce you can always sell it to someone. Gunvor buying it or someone else buying it really makes little difference.
    AVQ, if ever producing, would get a better price selling to the end user directly but by using Gunvor, a middle man, they will make less.

    As a farmer you should understand this. Farmers sell their milk to Woolies and then Woolies sell it to the consumer heavily marked up. Wouldn't you rather sell to the consumer directly? Of course.

    Hence the off-take is no big deal as it is not an off-take with an end user and has no capex component. Just an off-take with a commodities trader.
 
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