It's well known that our Chairman doesn't favour them. he was very proud of the fact that he only had to do 2 CRs while at QGC and I believe he would only contemplate another placement for AKK if there were no alternatives.
You can hear it in his own words by watching the full presentation on:
Although it's delivered in the CTP context he talks about general principles as to how to turn a minnow into a top ASX listed company.
He talks about "getting addicted to opium" = OPM = Other Peoples' Money. Even if the oppies do die a natural death, it doesn't follow that there has to be a CR. You can get OPM from many different sources.
For example, by negotiating a corporate debt facility or by negotiating JVs where the JV partner provides the lion's share or even all of the funding and AKK gets a free-carry. Or by negotiating project financing over specific projects with limited or no recourse to the operator. Or by a combination of JVs and project financing.
Richard has extensive experience in negotiating all of these types of commercial arrangements, so I wouldn't get trapped into thinking that no oppies money automtaically means further placement, as there are many tricks up the old dog's sleeve.
AKK Price at posting:
2.4¢ Sentiment: LT Buy Disclosure: Held
