Running discussion on SP, page-42275

A good question.

Changes were made in September that came into effect on the 1st Dec 2020 requiring companies that wished to utilise the additional 10% to go up to 25%, that they needed to show it was required due to exisiting or potential future financial effect of covid.

Not sure if AVZ would be able to fulfil that as it was more targeted at sectors who’s revenue is still impacted.Travel industry etc.

However they could well do and 25% of shares would now sit at around 726m additional shares. At your 18c would equate to around $130m AUD before fees. That’s still a short fall of the required AUD for the 20% of the $545m USD.

Saying that, no one in their right mind would want a CR anywhere below 20c surely, that’s after discounts, and 18c with the current SP would be way off the mark IMO. A bit of patience will be required.

@Roller62 is on the mark with the mining licence.

It’s a real pity that the SP has not gone higher after the last 2 offtakes, as we really do need the SP to trade high 20’s low 30’s for a sustained period to allow a decent raising, placement etc etc to go ahead. To start construction in August as per the plan, they will need the equity element completed.

Nigel has a few other things up his sleeve, plus I think we are likely going to have a sector move the next few weeks and will likely go along for the ride. Let’s hope that gets us over that 23-25c hill.

Ive made my view known on prepayments, I believe they should form part of the overall equity component required for the finance. SC6 discount or a discounted placement (and dilution) ain’t going to be too far apart. Prefer less dilution personally.

Plenty of questions for Nigel on the roadshows I’m sure.

GLTAH