Hi guys,
Let's address the 2nd question:
5 million out of our account or 5 million Capital raise?
It is the role of your Board to examine every project, on its own merit, and make a decision whether to outlay cash, ascertaining expenditure vs the risk exposure of our current holdings.
Two questions considered:
1) If we use the majority of our cash, will this empty our bank account, leaving the company exposed with its current operating expenses and future plans, or is there are a better option that can be explored for infrastructure investment by using the vehicle of a Capital raise?
2) Is it better for funds to be invested by the company's shareholders, and allocated towards permanent asset infrastructure/maintenance, which can create potential future revenues, or, do we use a large percentage of our cash reserves, which carries the potential risk of leaving the company exposed to unforeseen market events?
ANSWER: We believe, the Board has responsibly addressed this issue.
Rather than taking "X" million out of cash reserves, leaving our bottom line exposed, management chose the infrastructure investment CR road to ensure that we reduced any exposure to unknown risks or unforeseen expenditure associated with the new projects. QBL needs to leave money in the bank to cover normal administrative expenses, operating expenses, legal fees, equipment upgrades and cash that can be allocated for other projects, if required.
Investors only have to look at the Financials from the past 4 years to see which way the bank balance has been going. Audited Financials for December 31, 2017.
The Board has carefully considered and discussed all these options with the Directors and interested parties. This will be looked at in more detail at the upcoming shareholder's meeting. QBL will keep the market informed regarding this upcoming meeting.
The company continues to act responsibly in its pursuit to achieve the best possible outcomes for its shareholders, by managing and monitoring its risk exposure, during the building development phase of its core businesses.
Thanks.
Neil1959
HC QBL rep
QUEENSLAND BAUXITE LIMITED
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