LG and NAIF have shown support? This is a business. In case we’ve forgotten.
NAIF and LG has shown support by one looking at it…. for three years and the other by saying it will buy any product produced? That’s not support in a commercial sense of any kind.
If Auz had an already producing mine that had nowhere to sell its product then yeah, LG’s deal would be a kind of support. As it stands it is not support of any kind.
’They put their name on it’ people? No they haven’t. Show us all a single piece issued by LG that says ‘we believe this is a viable business’.
Elsewhere one of our pals said that an unconditional offtake was necessary for funding. Well that went out the window when there was a condition set on the offtake- the funding itself.
It’s a neat catch 22 for the Board: ‘we have an offtake, just be quiet while we continue advancing our advanced discussions!’. A bad one for the shareholders: ‘we can’t offer an offtake even if someone brings coin because management gave it away for free!’
Round and round she goes, how soon Sconi is given up on? No one knows but I wouldn’t be surprised to see it on the chopping block in the next few years.
My guess for the immediate future is- A year or more to sell/spin off the NSW tenements. An extension to the offtake until at least the end of next year- gotta keep the crowd guessing so they don’t all dump their stock. Consolidate and back to discounted CRs.
At best I see a tiny portfolio of tenements as all that’s left sometime in 2023/2024.
The too expensive to compete Sconi and the $5,000 patch of ground in WA.
Or do they wave the white flag and transition to a QPM model of importing and processing? Probably a bit hard to raise the cash to do that.
AUZ Price at posting:
2.1¢ Sentiment: None Disclosure: Not Held
