AAA: How much C A S H on hand now? What if they run low on cash?
We know they now have a financing commitment for 1/3 of development costs, but we should not expect the price of the stock to get too far ahead of itself before additional financing is assured with beneficial terms for AAA. It seems that considerable dilution of stock will probably happen somewhere along the way as they start borrowing money to develop the property. While we don't want share count to increase with a premature gargantuan private placement, eventually someone will want to make another deal with AAA, and most partners will want to make sure AAA will have cash to pay interest on the money they spend.
IMHO, the talk about $30 seems to be far-fetched withful thinking at best, especially when there is so much time and money to be spent before production begins. AAA is still very early into the planning and financing, and much money must be spent along the way as they evolve into a large potash producer.
I agree AAA is a long-term potential, but realize that we cannot predict the timing of the future upward slope on the stock chart. There will be some pops and drops and lulls and buying volume and selling volume along the way. If AAA pockets are not deep enough, BHP or other interests will appear before production begins, taking advantage of little AAA when the time is right.
IMHO there is extremely high probability of a buyout by some other company well before AAA reaches $30/sh.
Bashing? No, just considering how much money should be dedicated to AAA now vs. later in the development schedule. There are still lots of unknowns as to schedule and how they will manage costs and when they will dilute current shareholders with additional PPs during the development.
Regards to All,
Steve
MILKY WAY over Devil's Tower
AI
