hi luanboo i have gone through some of the daunting post for some questions below this might already be repeats of what you have. it is very frustrating for every one i bought in to this company in the early days because of low debt- management doing and delivering what they conveyed - up to when the plant was finished them the messy management part started and assurance was it will be all good after merger well you know where are at the moment i am large holder of a40 and still believe that they can sort this out but the dollars are ticking that could be the problem
1.couple of water issues affecting operations and future supplyof water to expand operations have we sort this out? –comment was made using this fresh water in the jig after the DMS and recyclingthis water to the process water tank/s. I bet they have hopelessly undersizedthis tank. It has to hold at least 2 hours residence time to smooth outirregular flows from the bore pumps and the pits. – other comments made was From the Offtake Restructure announcement there was ashortage of water that impacted production in the last quarter, but it soundedlike it has been resolved by 'improved water management'? However, where are wesourcing the water from?
2.a40 is not following normal, sequentialdevelopment activities does this affect fund managers considering investmentin a40 – comments made was there are too many good mining companiesout there, many of them now at reduced prices. AMAL is definitely not one ofthem, as they do not follow normal, sequential development activities.Remember the adage if it sounds too good to be true, it probably is.
3.burwill financially unstable– comments made it might be pertinent for$A40 holders to note that Burwill Holdings SP has dropped 66% in 6 months toall time low of AUD equivalent of 2.5c a share. Has big debt with continuingoperations losing $$ It's booked value for its assets may be overstated. Bearswatching
4.the selling ofineligible shareholders what amount isleft to sell by the 5 Feb– comments made Top20 holder announcement: “Includes 12,193,700 AMAL Shares allocated to CGNominees (Australia) Pty Ltd, who is acting as sale agent to sell the AMALShares attributable to Ineligible Shareholders from the date of implementationof the Scheme, as per clauses 6.4(c) and 6.8 of the Scheme"12,948,309 shares traded on ASX since 17/12. Some of this volume mayinclude sales for ineligible shareholders.
5. have they now sort out shipping issues-CEO had stated that they had problems gettingships in winter, hence nothing in Sept moved
Is tribeca the new owners of a40? Commentwas made - This serious delay in cashflow is dangerous imo when they took outan expensive last minute loan from Tribeca and handed them the keys to theentire business as security.
Will we need a capital raise soon– comment was made Clearly this did not happenin OCT NOV or DEC as the monthly production averages are pretty much the same.And imo they are too low to support ongoing production, drilling andliabilities without more capital
if demand is so high - anda40 had what was , or would become the only unspoken for product in OZ, I wouldhave expected a high price/ ton from a new offtaker or number of offtakers arethe market is so hot not a lowered one.
are we burning too much cash- comment was made It was good to see that inthirteen days of JAN they were producing at a daily rate which would meet theirnew guidance, however with only a small amount being agreed to be shipped,stockpiling product is costly when company is operating on expensive credit.Until they work out production
(which appears has not improved in 4 months according to theannouncement) and rapidly ship I think there is a bigger drain on capital andthat it will need to be replenished soon.
This drain on capital also makes it difficult to allocatemoney for drilling to improve the LOM on paper anytime soon.
https://hotcopper.com.au/threads/ann-restructure-of-lithium-offtake-agreements.4604281/page-187?post_id=37160429
6. The fundamentals at A40 are poor.I have to admit that I don't believe all juniors will survive. People speak about the fundamentals at A40 being good? What might they be? If a new deposit was discovered 50k east of Fremantle, of 200Mt, at 5% Li02 on surface, even Greenbushes would be under threat.
Sadly, it is a bit of dog eat dog in the boutique mineralgame. Look what the informal tantalum mining in the Congo did to traditionalproducers in Brazil and Australia.
The fundamentals at A40 are poor.
The reserve is orders of magnitude smaller than theircompetitors, the grade is lower and the strip ration 3X higher. What's goodabout that? Its further from port than any of its competitors and the littlewater they have is hypersaline!
