Unfortunately, nothing exciting with this capital raising. The provisional strategy was that existing operations would fund next segment however 33% drop in i/o price means that there is a funding shortfall. Company does not want debt until positive cash flow is assured from existing operations. Therefore would prefer to dilute share value through share issue rather than calling on the banks. I didnt get the impression that Ridley will be taken on with JV in short-term. Its a 2.7 billion dollar project. Looks like they will be calling for something north of 200mil in cash payment from partner. Consistent meetings with Chinese though 2.7 billion dollar project requires lengthy due diligence. 12-18 months till value of the company can be properly assessed in my opinion. This is a buy with out a doubt, wouldnt be trading it for short term profits, though may come out of the gate running because the company gets a chance to display projects in exciting time for i/o.
AGO Price at posting:
$1.70 Sentiment: Buy Disclosure: Held
