The $5M, whilst not great, is a whole lot better than nothing. And it buys them a lifeline.
This should allow them to pay off some of their creditors and debts etc and if the Willuna mine is now creating $1M per month of net cashflow, then that should keep the wolves from the door for the time being.
Also it means they don't have to negotiate in total desperation over Willuna if they have this positive cashflow to get by on, assuming the Younami money pays off most of what is owing. Still, getting the $50M is obviously quite a stretch.
This is a very interesting company to be following. It looks like longer term holders really got cleaned up here. I suspect this will get smashed in the tax loss selling period.
The question to be answered is how much do they need to sell Willuna for to have money leftover?
Or furthermore, can they survive if Willuna is not sold?
AXM Price at posting:
2.0¢ Sentiment: None Disclosure: Not Held
