have faith in the wait

This company will survive. I looked at the financials when they first came out. The carried forward losses worried me but then all start ups have losses in the early stages of exploration and development. however we are now in production mode.

Cash reserves are low and disclosures relating to Shougang $40 million line of credit, Belasco litigation and immediate funding of two $5 million loans a worry.

One received credit approval however has it been signed off.
Second $5 million approved subject to investment committee review.

Can't say i enjoyed reading the material matter raised by the auditor in relation to going concern issues. However going concern is safe providing short term funding is resolved.


I've been watching the argument go back and forth. ADY has the fundamentals to make it through this finance period " Hawkswood loan debacle". The loans funds funds they require for the short term are quite small considering the balance sheet assets.

The credit crisis is our problem. normally this stock would kick on. everybody is having funding issues. US Fed announced capital injections start this week. interest cut for australia next tuesday that leads to positive momentum. Most of the financial results by October will be out so some good new can start hitting the market.

This points to loosening of credit which is whats needed to get these loans deals through.

1.They have a plan going forward
2.expansion opportunity not just exploration possibilities.
3.access to new emerging market of significant

However:
Phil must secure the long term funding or sell some assets and make a commitment in one direction or another, eg bulman, pike hill, sell a few mine rights in chile. they have ten locations two operational. or get a new joint partner for iron ore.


The fact the share price has dropped aint so bad considering all resources are off significantly.



Prediction: Funding at 11th hour will come.

My stock holding is getting larger but my average cost is 8.5 cents and getting lower.When the upside comes and it will, i'll be in the game.

cheers guys