AUZ 0.00% 0.8¢ australian mines limited

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  1. 97 Posts.
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    Yes.

    They have 14 years of production at 3ktpa, when one considers they expect to retrieve 80% of their 54kt resource.

    Factor in the value of their material and consider opex.
    CLQ the company they keep comparing themselves to, expects $140-240 million per year in operating expenditure.
    CLQ have more than twice the average grade (0.13 vs 0.06).

    CLQ didn't include ore below 0.06% in their resource estimate. AUZ's average grade, is 0.06%.

    Consider the capex necessary to build (approaching $1b).

    AUZ is dead in the water unless one of their other two projects are outstanding, Sconi isn't a good investment by today's cobalt prices.

    There are so many red flags over this project it is truly insane that so many punters are being sucked in.

    If you want to gamble over drill results, that's fine, but don't bank on the Sconi project.
 
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