This statement by TAS is completely and utterly false and misleading.
They cannot afford another quarter like this one with only $10.8m in the bank. Lounge lizard now anticipated to be out the door by the 3rd quarter? Getting way too tight, no wonder the finance guys got out!And the bank facility matures end of February as well.
It's not the 3rd quarter of 2012, as you imply.
It's the 3rd quarter of FY12. That is this quarter - Jan-Mar! As earlier advised.
It is specified in the presentation in the corporate section on page 22, at 24m.80s, whereby Geoff states...and this is word for word...
We have had a number of parties that have moved from the indicative bid stage, that occurred in December, into the 2nd stage of the process and we are still aiming at completing that deal or that process within this current quarter.
That's why they are cutting it fine and only raised 25 mill in the last cap raising. They only need 10 mill or so to fund operations until this deal is complete. Why dump too much inventory with zinc at 83c. We've already seen prices move up from the low at 78c to 86 today. Jan 21, Chinese buyers will return and we should see 90c very shortly and $1-$1.10 by mid year after peak restocking has occurred.
I've been telling some broker/investor friends of mine not to buy until the situation with zinc improved or until we had clarity about the bid process. Now, almost all the pieces are there.
It also explains why the finance department got a shake up. They miscalculated the cash required to carry them over until this quarter or until this deal was done. Now they are gone. Pure and simple.
KZL Price at posting:
29.5¢ Sentiment: Buy Disclosure: Held
