Possible query from the ASX over the current cash position.
However here is my issue(s):
Dec 2010 Qtr Report 31/01/2011
Mechanical and electrical commissioning is expected to take place over the March quarter, with first production shortly afterwards.
and
ATC’s raw materials procurement personnel, who have decades of experience in the tungsten industry, have identified numerous sources of feedstock, and are awaiting for a stabilisation in the price before committing to purchase of raw material.
"who have decades of experience in the tungsten industry" (check what happened to prices of tungsten in the following months)
and
Ultimately the long term success of ATC will hinge on the development of Hazelwood’s 100% owned Big Hill Tungsten Deposit in Western Australia which can provide up to 2/3rds of the feedstock for ATC’s ferrotungsten operations.
March 2010 Qtr Report 29/04/2011
The ATC Ferrotungsten Project is scheduled for hot commissioning and planned first production during June 2011. The furnace hall is complete and other site building are either complete or will be completed by June 2011.
On the 24/08/2011 HAZ announced:
Hazelwood Resources Ltd (Hazelwood) is pleased to announce that it has signed a Terms Sheet for a secured Revolving Trade Finance Facility for the purchase of inventory items for its majority owned ATC Ferrotungsten Project in Vietnam.
Under the non-binding Terms Sheet, LH Asian Trade Finance Fund Ltd (Lender) has agreed to provide up to $US6 million trade finance*, Hazelwood and the Lender are proceeding with the documentation of a formal, binding agreement, the final terms of which shall be announced following the finalisation of the documentation.
Annual Report 27/10/2011
There have been delays to the start of production at ATC, partly as a consequence of access to satisfactory finance for inventory purchase, which has taken longer than anticipated to negotiate.
and
In the longer term, primary mine production from Hazelwood’s own mining centres in Australia is considered an essential element in the vertically integrated business and is the key to becoming a significant long term supplier of high purity ferrotungsten to consumers in Europe and Japan.
Dec 2011 Qtr Report 31/01/2012
The Company is actively being presented to a range of local and international investors to assess the most appropriate funding strategy for the procurement of inventory and first fill for the recently completed ATC Ferrotungsten Project
and very important IMO
Syntella are assisting with a strategic review of the Company to determine the optimum structure for realising value from Hazelwood’s refining business unit (ATC) and Australian based minerals assets.
and finally from Dans email:
As we have disclosed, both Hartleys and Syntella Partners of New York are working on the appropriate funding mechanism for first fill and inventory. This will be disclosed in a timely manner when it has been decided
**END**
"a timely manner" but all related, is it not?
First Fills (including FeW liner) were reported @ 3.5M in March 2010. This number must be close to double now.
Big Hill CAPEX March 2010 was @ 110M and unless you have been under a rock for 2 years mining projects in Australia have experienced cost blow outs across the board for a number of various reasons so expect that number to climb dramatically.
HAZ @ 10c M/C < 30M. Sneak in a 15% limit CR @ 10c (unlikely) = 45M new shares or 4.5M. HAZ commitment under JV = how many more million? I have no idea but I bet its more than 4.5M and that does not include admin, exploration, Mount Mulgine (PFS), Big Hill (DFS) or blao's wild parties in Vietnam.
Enter Syntella Partners.
Seems to be a buyer @ 10c so it I doubt it is half as bad as my thinking but sheesh talk about being kept in the dark.
HAZ Price at posting:
7.5¢ Sentiment: Sell Disclosure: Held
