Doing ok - got COVID like much of Sydney it seems but fortunately not too badly.
I agree AUZ might not fail without funding post June 30 (or at least a very solid extension from LG) and they might well limp on but realistically if they have burnt SKI then LG you would have to wonder where the next offtake is coming from as many of the companies out there are setting up for their supply requirements now.
More importantly If they can not fund off the back of the LG offtake which is a prime offtake in terms of counterparty are they going to fund with the next counterparty which might not be as strong, how long with it take to get another offtake and will the funding environment be any better then.
i'm sub 10c(1c) for the bulk of my holding (I have shares across a few vehicles with one holding well below 10c) so I can exit now in the green but I still believe for reasons I have outlined in earlier posts they have a reasonable prospect of obtaining funding with the core basis for that belief being the fact that LG must have undertaken due diligence on AUZs ability to obtain funding before signing the offtake. At some stage as we get closer to June if there is no news and the SP is starting to drop I will have to reconsider my position and the risk profile I am prepared to maintain with a view to capital preservation.
Unlike some here I took an positive view of the recent consultant announcement - but it really boils down to the reason they made the appointment which we can only speculate on:
is it because they have funding complete all bar documentation and are starting to prepare for the next stage - or
have funders requested additional details of their plant, costings etc - or
is it that they have discovered they are getting nowhere with the funding package they are presenting and are trying to work up a stronger revised package.
One thing for sure - June 30 is getting closer
AUZ Price at posting:
19.3¢ Sentiment: Hold Disclosure: Held
(20min delay)