AUZ TWO Weeks Away From Delivering Offtake Samples of Critical Battery Metals

This will bring AUZ closer to its objective as a major global supplier of critically needed battery and technology metals.

AUZ is busily progressing two world-class, JORC-compliant, cobalt, nickel and scandium projects in NSW and Queensland: Sconi and Flemington.

Sconi is the most advanced project of its kind in Australia, with mining and environmental approvals in place, and a Bankable Feasibility Study (BFS) due April 2018.

And with offtake partners set to receive cobalt sulphate, nickel sulphate and scandium oxide samples soon, AUZ could be soon leaving its small-cap days far behind （**************)

Recap Fair Value for AUZ base on expected yearly production,

1) Projected Cobalt, Nickel and Scandium Annual Revenue: 630 mil AUD$;
2) Costing & Expense = 45mil pounds x 6 US$/lb ~330 mil AUD$
3) Net Profit = 650 - 330 = 300 mil AUD$;
4) EPS = 0.115, PE consider as 5 to 10;
5) Fair Share Price For AUZ = 0.58 AUD$ per share to 1.15 AUD$ per share
Note:1)  for very safe purpose, lets adopt Average C1 operating cash cost at US$ 6/lb nickel ( take note CLQ    adopt 2.96 or 0.89 at PFS); This US$6/lb will factor all other expenses.
   
   2) CAPEX to construct processing plant estimated 700mil AUD$;
   
   3) PE set as 10 is very safe, you can refer to Glencore's current PE=29.54, refer to https://www.marketwatch.com/investing/stock/glen?countrycode=uk

CONCLUSION

When AUZ in production during middle of 2019, in the first two years, there will be negative cash flow due to expensive CAPEX, but from third year, the cash flow will be very encouraging. personally, base on the strong demand for cobalt used to EV, cobalt will be go higher.

Fair value to AUZ is 0.58 to 1.15 AUD$. Pls seek professional financial advice if considering this stock for your portfolio.