Firstly, they do not have $6.5M at in cash/cash equivalents, it is $6.1M as per the latest Appendix 5B
At the time of writing they have cash remaining in the respective budgets that could be used for an acquisition:
M & A budget for complementary assets/opportunities -- $190,000
Working Capital $311,000, the 2 year working capital budget has been depleted by 42% in 9 months, at current usage this equates to 55% which is basically on budget for working capital for the company with the Hamersley IO project.
~ Which hardly leaves any excess working capital for (1) an acquisition? (2) servicing that acquisition.
~ If precedence is anything to go by, the Company cannot try and utilise funds that have been allocated to the Hamersley Project.
You just need to go back and look at how the ASX viewed PF1 trying to utilise funds that were outside of planned budgets of the prospectus, this will be no different (IMO)
~ any acquisition will have to remain inline with the current core business model, moving outside of that will (opinion) receive the same treatment from the ASX as PF1, which is almost like being a backdoor listing, something the ASX has actively been trying to negate with companies having to reapply for admission and satisfying Chapters 1 & 2 of Listing Rules.
Yep, this is HotCopper, a share forum site to discuss trading stocks that does not have under its published TOU's any criteria that requires you to hold a stock to be able to participate in discussions.
A lot to be said with the resignations of directors that had IO expertise suitable for the Hamersley project and replace with ? ?
The further delays to any infill drilling / drilling programs and resource upgrades with the Heritage Surveys now expected to commence in September, how long do they take to complete? are the surveys only being taken over the proposed drill sites? or over the whole site including any ground breaking activities for roads, camp sites, etc?
Thoughts on the price of IO declining, with revised analysts reports predicting further drops in the price?
At what price point does the Hamersley project IO grades / impurities become unviable?
Or are you just following the 62 Capital crowd as purchasing 6 months ago would have nothing to do with the new director (which I will add, he had nothing to do with any perceived performance of PF1, as he was only recently appointed) and in reality and IMO there has been little progress on the IO project to date (circa10 months since listing) that would inspire investing.
As for directors/ substantial holders buying it is typical of 62 Capital backed stocks, buy some shares on market to generate interest.
In regards to "looking for an acquisition" it is a common inclusion in all penny stock companies activity reports, it was also highlighted in the EQN IPO Prospectus so it is hardly new news!
cheers
ps
~ PF1 since listing has not progressed or performed to the point that the tenements are going to be maintained in good standing in view of divesting?
~ PF1 Share price appreciation and volume prior to the trading halt to announce the proposed acquisition was interesting to say the least .......
~ CRR, another familiar face being added to the director list with Markovic appointed a director, and what about the resignations?
https://hotcopper.com.au/threads/ann-board-changes.6891772/page-34?post_id=63209388
(20min delay)