Glass half-empty view ....

Just for some balance ...

"In early 2014, Australian Bauxite Limited (ASX: ABX) (ABx or Company) commenced negotiations with several potential customers".  So 18 months in and nothing has been concluded even though its an in-demand product that's only become more in-demand in those 18 months.

"ABx has been offered an acceptable Long Term Offtake Agreement with one of the pre-qualified customers" .  Sounds like its still not signed.

"In October 2014, ABx concluded binding term sheets with Noble Resources International Pte Ltd" but "Under the terms of these Agreements ABx and Noble had to still agree some essential commercial terms."  I don't remember the qualification being part of the October-14 announcement.  If an announcement about a BINDING TERM SHEET is not something that can be relied on can we really rely on "BEEN OFFERED AN ACCEPTABLE LTOA"?  Apart from the one being relied upon by ABX's management, I wonder how many dictionaries have "binding" and "still to agree" in the same entry.

"ABx raised sufficient funds to obviate the need to draw down funds under the proposed Loan Facility and the Term Sheets came to an end on 30 June 2015."  Sounds like trying to make a bad situation sound like something we really wanted.  Its great that ABX wasn't going to need to draw down funds, but all it had to do was not draw down funds.  It doesn't make the Noble deal falling through a good thing.

"so as to ship our first shipment of bauxite into China later this quarter".  This is the most concerning statement to me.  It could mean no money until Q4.  Not sure how much stockpiling costs, nor how much is being spent on production, but my model suggests if no revenue is received before Q4, the company may need either debt or equity funding to cover working capital requirements.

fire away ...