The transition from pre-revenue explorer to cash generating...

The transition from pre-revenue explorer to cash generating producer can be challenging. It may be tempting for a mgmt group without a significant holding in the company to fund this via dilution.

See HRR as a cautionary tale. The share price fell by half following the dilution-driven capex and still hasn’t recovered. And yes, Heron also secured debt financing, pre-sold offtakes, etc.

I’m not saying this is the only outcome for Azure but there’s lots of risk of major dilution on the horizon before the company earns a single cent in revenue

I’ve posed the question previously. Rovira said in a recent article that he hopes to fund mine capex without ‘selling the farm’. what do you think he sees as the ‘farm’ in his analogy? This is key to understanding his priorities