oh i found your so called "9 pools of funds", did you mean...

oh i found your so called "9 pools of funds", did you mean this?

"We also have either in the pipeline or in place or available:
- bank overdraft
- trade finance against the iron ore stockpile
- discount facility against letters of credit
- equipment loans as none of our equipment is leased, it is all owned outright
- senior asset debt. That is no assets are encumbered except by Admiralty Resources
- convertible note facilities if we want to go down that route
- potential for a bond issue as per what Fortescue did, when further reserves are proven
- private debt
- emerging country (Argentina) NGO debt"

You do realise he's wording them in forward looking terms, they are possible, but not certain at this stage.

Quite simply, if there were so many options. Why did he have to do SP raising?


Now lets analysis his so called options, since i feel this will become a contention point of faith against reason.

bank overdraft - ADY according to last quarterly has 22mil of loan facilities which they have used fully as of last quarter. I'm not sure why PT didn't organise additional loan facility before he did the SP raising, perhaps because he simply couldn't so he went for the SP raising.

trade finance against iron ore stockpile - I'm not sure which stockpile he's refering to, but using the last quarterly activities. "The stockpile was completely exhausted with two shipments to WISCO and one to Shougang."
It would appear there is no stockpile, in the unlikely event there was a phantom stockpile, I'm sure you realise WISCO has priority over this. So in reality there is no stockpile to use for finance unless a phantom one poped up out of the blue.

discount facility against letters of credit - There is no letter of credit at this stage, its conditional on the contract to be signed with Shougang in july. If you would read the release, you can see that PT has used nicely worded forward looking terms.
"A draft of the proposed SBLC to be provided by Shougang International’s bank has been accepted by our Bankers."
Note the words, a draft of the PROPOSED SBLC.

equipment loans - yes he can do equipment loans, but imagine the market sentimet this action would arose. Only a company down to its last penny would do loans based on equipment assets.

senior asset debt - Uncertain at this stage, PT has released no details of talks with any institution over this, not sure if this will work.

convertible note - yes this will raise some funds, its just as good as doing another share raising.

potential for a bond issue - uncertain at this stage, there has being no information released about this to the ASX as well. The reference to FMG was nice, if only PT measures up to twiggy.

private debt - uncertain at this stage, could occur if someone does come forward, but until that someone materialises, its another forward looking statement.

NGO debt - This is ridiculous I'm not even going to bother with this one.

So have a good read and know the cashflow risks present here, you need to just look around to see what cashflow/debt problems does to companies with "GREAT ASSETS". ABS, BNB, PASMINCO etc