Several people have recently been suggesting or asserting that APG will need to raise capital in the near future. I posted several days ago asking why, but haven't yet got a reply .... only more assertions that there will need to be a share issue.
Cash at end of Dec 2008 = $2M Expected cash burn during Mar 09 quarter = $0.8 Cash position start June 09 quarter = $1.2M Expected net profit post June 09 = $1.75M per quarter
If you have reasons why you think a capital raising is necessary could you please explain why. I can see a couple of possibilities, none of which would appear likely...
- The Newcastle startup is later than July, or doesn't ramp up to full production. None of us know the answer to that. - No deal completed with stakeholders for Newcastle material. Seems unlikely. The construction and startup of the demo plant appeared to go remarkably smoothly. - Cash burn for the 60ktpa synrutile plant BFS is greater than earnings from Newcastle. Seems unlikely, but possible.
So. Tell us why.
APG Price at posting:
3.5¢ Sentiment: Buy Disclosure: Held
