black knight on one leg and wobbling

The Pythonesque tale of OLY (the Black Knight) continues.

Minus two arms and one leg, the fearless Black Knight battles on, bleeding profusely, as The Big Guy sucks up another 3% of the stock today.

All is finally revealed today in yet another oustanding set of financial statements, which on very close examination are very worrying and show the extent to which these directors have played chicken with this company's very existence.

At last the directors have decided that they will reveal the existence of the up until now secret loan of $2m from TTY.

Refer page 10 of the half yearly and the Note 1 "Going concern" wherein they advise that the company has prepared projections to 31/3/2009 which show that "there will be a requirement to generate funds by a combination of operating cash surplus, capital raisings and debt finance."

Note not just debt finance, but it will require equity raisings as well (to continue as a going concern).

Of course they have a $0.725m facility with NAB, the secret $2m from TTY, the Fortrend $7.5m facility (what have these guys been smoking?) and a commitment from a broker to do an equity raise of up to $5m (for a company pre bid capped at < $10m?).

Have these guys looked at a newspaper over the past 2 months at what is going with leverage and the tanking of equity markets?

A brokers commitment is not worth the paper it is written on in this market. TTY will pull the secret $2m facility if it doesn't get its way and who would step into the breach then? NAB??? Dream on.

The Fortrend facility needs to shareprice to get to 15 cents and then the moment you touch that one it's go to Rio.

If The Big Guy wasn't in the market its share price would be sub 6 cents, so assuming you could raise the dough you have even further trashed the issued capital (what's wrong with another 100m shares at 5 cents?)

But having now decided to actually tell their shareholders about the up until now secret loan from TTY, there seems to be some more disclosure they have let on. The Island Minerals JV actually provided for the potential issue of 3.5 m shares(never previously revealed) for entering into the JV. Minor in the scheme of things, but these things are nice to know and why dont they tell the shareholders?

But perhaps a bigger disclosure item that is very material and remains a complete mystery is Harts Range. Perhaps the board now that it has found a need to fess up on a few secrets might care to inform the market about the status of this core asset and what could happen to this asset perhaps sooner than later .

No doubt the Big Guy knows all about this one due to his intimate knowledge of all things OLY and maybe he will let fly on Thursday such that the Black Knight will be completely legless by Good Friday

This board has been played like a bunch of dopes and they have absolutely no-one to blame but themselves.

An absolute disgrace.