Ann: BFS supports strong commercial case for developing Sconi, page-706

I am not one of the ones who hopes that auz doesn’t succeed, but the path to success needs to be constantly re-evaluated. 99/100 people here forget that there are 2 groups which the SK deal was designed to please.

AUZ holders of course but most forget/ignore the SK holders. For no money down the SK people got paper confirmation of supply- if they want it. SK will 100% survive in its current form if they reneg on this deal.

Can the same be said for the Aussie side of the table?

Would AUZ holders rejoice if AUZ only received 1/3 of the share price at buy in? In other words, who thinks SK holders will rejoice if they figure out they’ve paid up to 3 times what they could have on the open market?

Seat at the table is seen as something to be valued by them for their buy in? They could buy in the open market & once having bought enough shares would have the same level of control anyway.

Imagine you are SK.

‘I can buy 19.9% for $80 mill as per our deal or I can buy well over 40% for the same price on the open market’.

Just play devil’s advocate for a moment.

What path would you take? 19.9% or 40-60%?

Remember that stock positions may have already have been built or are starting to be built on the open market via proxies.

We are nickel/cobalt juniors. Glencore has shown that it rules the cobalt world & BHP etc rule the nickel world.

We shouldn’t get too big for our boots before extraction has begun, nameplate has been achieved & offtake customers send ‘thank you & congrats on a job well done’ notes with a case of So-ju or Asahi or whatever it is whoever winds up grabbing these Au nickel/cobalt juniors drink.

To the Korean/Japanese mind it is all about milestones. Miss too many or delay any single one too much & the whole dynamic of the relationship changes. We are largely seen as being pretty simple to those from north Asia & known for being less than punctual. ( rightly so- most of those we deal with come from families where the stay at home mum is a university graduate ).

One things for sure- it’s a great opportunity to learn a lot from people with more knowledge but also just by observing the process of the juniors on the road to production.