By Steve Moore | Tuesday 2 May 2017
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
An “Update on share suspension, Inata and Tri-K” announcement from Avocet Mining (AVM). “Update” on share suspension? When was the suspension then?
“Avocet Mining PLC announces that it has been unable to publish its Annual Report and Financial Statements for the year ending 31 December 2016 within four months of the year end, and, as a consequence, the company has requested that its shares on both the London Stock Exchange and the Oslo Børs be suspended with immediate effect. The reason for the delay in publishing the accounts is due to the time needed by the group's auditors, Grant Thornton, to complete their audit work.”
Not so much an “update”, rather an announcement of the shares being suspended then! “The company expects the audit to be completed in due course and will apply for the restoration of its listing immediately thereafter”, but delay due to time needed to complete audit is not exactly confidence-inspiring on the transparency of things here. However, there is still worse…
This is with its production being hampered by funding impacted by the need to clear overdue payments; “the immediate priority is to negotiate continued support from creditors to allow operations to continue, whilst in parallel, the company seeks the financing needed to secure the additional production from satellite pits”. It though admits;
“This will represent a considerable challenge, with compromises needed from all stakeholders, with there being no guarantee of a successful outcome… In the past weeks, the new management has started discussions with the mine's trade creditors, banks and government. The market will be updated on these discussions in due course.”
Uh oh. Meanwhile, the company continues to wait for the publication of a Presidential Decree for the Tri-K project in Guinea which will trigger the ‘First Closing’ of a farm-out agreement and it due $4 million. However, this was previously dissected by Lucian Miers HERE – and hopefully his warnings were heeded.
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