So are you here to protect us, what is your intention, if you...

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joey72

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25/07/18

08:37

Post #: 34547846
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Originally posted by Oversee ↑

Good point. They can pay the drillers with magic beans or perhaps the drillers can keep some of the dirt they dig up or even on a contingency basis or we only pay you if we find good deposits? So all the risk is with the driller, which is very unlikely.

The usual payment method for drill contractors is exchangeable funds, or otherwise referred to in a conpany’s financial accounts as “cash”. It need not be hard cash, but it is certainly funds.

I doubt the drillers will risk incurring costs and liabilities with employees and contractors etc and doing work without some agreement in place for payment (in advance or on usual terms of payment in x days). And if they do, then VIC needs “cash” (in the accounting sense) to meet that liability rather than hoping that the drill results are positive so they can then raise some “cash”. If it doesn’t have those funds, then the directors are facing liability for insolvent trading if it all goes wrong and/or ASIC also steps in and questions where it will get money from immediately otherwise it may suspend VIC from trading to protect investors and the integrity of the ASX.

It’s not fantasy land here and back paddock handshakes, but a public company on the ASX.

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So are you here to protect us, what is your intention, if you don’t mind me asking?

VIC Price at posting: 0.8¢ Sentiment: Buy Disclosure: Held
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So are you here to protect us, what is your intention, if you...

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