This is my second only post but I am indeed a long time APG holder who follows the HotCopper (HC) commentary. I haven't had anything meaningful to contribute (until now perhaps).
The APG announcement will disappoint many (possibly all) as there was no deal announced - it's still pending. The material information that APG wanted to inform the market on was essentially its China prospects. I am sure there will be many interpretations soon on HC as what this means overall.
I think there are four possible explanations.
1) Firstly, APG wants to get a better deal from the International company they are in negotiations with
2) Secondly, the deal being finalized doesn't address all the capital required (for instance it definitely covers the cost of completing the plant but might not provide APG with running costs it needs)
3) Thirdly, the International Company wants additional confidence that there is a market for the technology (possible but less likely in my view)
4) The fourth explanation is any combination of the above
The basis for my argument is that:
a) APG has made it repeatedly clear that project funding to complete construction is being finalised. To argue this is not the case is to challenge the integrity of the company.
b) Nowhere in the updates has it mentioned funding for operational costs are being finalized.
c) A Discussion I had with MT last Nov - Dec (?) indicated that operational funding was required.
While I would have very much welcomed an announcement of a deal, this substantial shareholder is resolute in the belief that MT is fighting on his and our behaves to extract the best deal for the shareholders.
For consideration
Padstow
APG Price at posting:
0.8¢ Sentiment: Hold Disclosure: Held
