Is the financing arrangements, Capital raising nearing?
I think that the "commercial in confidence" = "we wont tell the market our opex" is pretty weak by all standards for an investor to want to come in and buy shares.
What are they buying? what are the economics?
My understanding is that when negotiating an offtake where they are trying to enter an existing market, is that they would need to offer a discount to whatever the customer is currently paying.
Negotiating offtake.
So it doesnt matter if the customer knows that it costs you X to produce.
The bottom line is that they are getting a discount to what they are currently paying.
The company had previously put various estimates of costs on its presentations that varied wildly.
Perhaps the they really dont know the opex?
And that is a worry.
The company needs to grow a pair, sack up, and present its opex to market, so that they would have some support to their SP, and could if necessary raise capital at higher prices. They need to stand firm, and say to their customer that it doesnt matter if it costs us $2 or $20, we offer you a discount of this X to your current supplier.
To not do this, is undermining shareholder support, and the sp will erode and potentially CR under 5c.
AKA Price at posting:
9.0¢ Sentiment: None Disclosure: Not Held
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