Megafactories buildout could up nickel demand in batteries 19 fold—Benchmark, page-109

 SKI very much needs AUZ nickel/cobalt sulphate as part of their huge expansion plans over the next few years as has been discussed to death both on this platform and throughout local and international media channels. They cannot rely on scrambling throughout the world spot markets for dubiously sourced Nickel/Cobalt Sulphate  as a basis for that expansion.

In my opinion it is inconceivable for them not to take up the $80 million  share option as they will earn a modest discount which over the binding agreement which will pay for itself. Effectively the shares will be free on that basis and the share price will off course move to meet or exceed 12c after take up. The take up will send a further message that the project is happening prior to conclusion of the long form agreement/revised and eagerly awaited upgraded BFS  and full tier 1 funding in the next few months.

The macro environment for battery materials is currently  being systematically manipulated by powerful forces but this will only be  a temporary situation and the whole sector in my opinion is on the cusp of a  large and sustained rebound. If you thought 15 cents last year was hype for AUZ then just wait and see where we are heading in the next 12 months !

The momentous paradigm shift in the energy and transport sectors that is on our doorstep is so sweeping and certain now and the battery material demand so large that it will truly exceed all our expectations. Remember S curve disruptive technology is non linear and every year the analysts take up  estimates are continually revised upwards! Currently their are 70 gigafactories in the planning development stage up from 19 the previous year! Even blind Freddy can see where this is going !

Elon Musk was quoted recently that he believes that TESLA will have their battery packs down to a price below the much touted inflexion point of $100/KWh  by 2020 which will mean true mass market take up of EV's.

I urge all share holders to continue to review their holdings and apply due diligence on a periodic basis but presented with the facts and not the negative hype I choose to hold long term

The fundamentals as so compelling for AUZ mines as the  most advanced Nickel- Cobalt- Scandium project in Australia that I look forward to the future with confidence. 

Killfeather