The market was concerned across the board recently in relation to the falling Fe price as you must be aware mooroo.
This appears to be abating as the price corrects and approaches expected higher sustainable levels.
Furthermore, there have been a few (specific) sellers, of whom I, and the Company are aware, who have required money for one reason or another. This happens with many stocks and Amex is obviously not alone.
This, along with the protracted difficulties that the Company (along with many juniors) has previously encountered in arranging funding, has resulted in some shareholder frustration. The medium term outlook for this small but highly profitable Company is excellent and it is very encouraging to see the major construction work beginning this month.
As far as "burn rate" is concerned, the project has been undergoing capital expenditure in the form of forward orders ($) for plant and equipment commitments , local Fiji infrastructure, considerable travel between Australia, China and Fiji, admin and other costs. The soon to be released quarterly should have further detail if you are interested.
The ex Chairman, considered to be within the top ten or so influential business and political identities in China, completed his assignment to open doors etc for the Company and has moved on to much bigger corporate responsibilities elsewhere.
I, and other shareholders have a strong belief in the future of this Company. The fundamentals are strong. Project funding in place; the "serious" work commencing now; a formal offtake agreement with a major Chinese player for 70% of planned production; firm expressions of interest from other Chinese mills for more of the specific product that Amex can ever produce; a good management team in place; the backing and encouragement of the Fijian government who wish to see local employment and the side benefit of flood mitigation of the Ba river; low Opex (around $26/t).
Whilst shareholders are someone frustrated over the protracted period the Company has endured to achieve the required milestones, the vast majority understand that when in production next year, the current share price will be of little relevance. With few shares currently and ultimately on issue, the projected ROI is outstanding and not to be found in most companies within the ASX!
