TSXV:AAA.P - Post by User
Post by
Fertimanon Jan 30, 2014 11:56am
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Post# 22153363
AGM comments by Skipper
AGM comments by SkipperSkippers notes below.... Now after reading this you tell me if I should be worried because we have had a coupelk of days of down side here... Heck we were up 100% from the low at one time here this past week!
I'm a long term investor and I keep my eyes on the long term picture..... and I LOVE what i see, Day traders / Bashers / scum what ever you want to call them will trade and play with Allana but the overall direction will be controled by FArhad and the excellent managment group.
Now, my take on the meeting today:
+ new focus on Africa agriculture. Previously, the Asian market was the focus; with economic &
agricultural growth within the east & west African nations, more attention will be directed there.
+ it was mentioned previously (& the presntation) that Ethiopia will take 4% royalty on production, with
the plan for taxation be reduced from 35% to 25%. Allana is currently striving to get tax holidays & a
special investment licence.
+ funding plan has been accelerated; key players to meet with AAA Mgmt next week.
+ advanced stage talks currently with large fertilizer companies;
+ Ethiopia's excellent agricultural growth plans to key on 4 blending NPK facilities, expected to
produce
200mm tons of potash, of which AAA could see 10% of this production;
+ the mining licence granted by the Ethiopian govt is a key factor in govt support;
+ Currently cash on hand is $10mm, with current burn rate of $1mm/month, with plans to get it down
to $4-500k/month. This should be good for 2 years (that's the plan);
+ AIM listing was originally intended to provide an entry for European/Asian market to Allana trading.
As we now know, it has been delayed until after strategic financing has been completed (sometime Q1
2014);
+ Ms Walters resignation as Director was a result of LMM Management re-focus. She may return in
due course. LMM still has the option to fill a replacement for her on Allana board;
+ Allana has good relations with Yara. Yara needs help with water & port facility. They talk monthly;
+ the BPC breakup hurt the potash market initialy but, the good side was beneficial to Allana because
it gave the larger players an incentive to look at Allana & its Capex/Opex. As we know, AAA's cost
basis if crucial for competition. Allana is strong in this regard. Originally, our FS showed a IRR @ 33%
with potash @ $430. With the price @ $300, our IRR is very good @ 20%;
+ the Djibouti port is to be fully funded (Saudi Arabia & Kuwait), with completion expected EOY2015
BTW - I have to include ' E&OE' as I'm not a stenographer so there may be some inaccuracies. My
apologies if there are.
Skipper
Read more at https://www.stockhouse.com/companies/bullboard/t.aaa/allana-potash-corp#bBCDc1JYuyx1RZdu.99