Lets wait and see what the outcome is with LGE before writing off AUZ.
AUZ are still presumably in discussions with LGE - if those discussions had ceased AUZ would need to make an announcement given the statements in the prospectus and the most recent investor presentation.
Yes the SP is down significantly after the consolidation and many SH are hurting - you, Gong and others might not see value in Sconi but clearly for whatever reason LGE sees sufficient value to stay involved and see if a revised deal can be negotiated or they would have exited long ago.
After 2 failed time limits LGE entered into further discussions with AUZ as SH were advised in the investor presentation and the prospectus.
If Sconi is such a dud project as @Gongbeater suggests why is LGE still involved? What does he know about Sconi that a huge multinational company with massive resources doesn't know?
@hotdogrob - you observed that Holmes in your opinion "has nothing" - I can't agree - he managed to get a CR up which gives AUZ a reasonable cash position with the LGE deadline at the time pending with a less than attractive SP trend, he has outlined a new strategic plan, he has LGE in ongoing negotiations re a revised relationship and he has certainly improved communications with shareholders in the period since he was appointed - I would say he has kicked a few goals in the relatively short time he has been at AUZ.
If LGE pull out AUZ shareholders will be in a world of pain, the current situation clearly has huge risks for shareholders - I certainly have not shied away from that and neither have many of the SH who post on here Gccc12 included, but that could turn around significantly if a revised deal is consummated.
If LGE goes then AUZ will need to regroup and decide what it does next - I would think it is time then to put Sconi on the shelf and put what cash they have into some of their other projects if for no other reason than to enhance their value for sale. If LGE goes, whether I stay around for the next incarnation of AUZ will depend on what revised strategy AUZ announces or I will cut my losses for the tax deduction.
While AUZ in the past has missed many deadlines I have a feeling the March 31 deadline this time for an outcome with LGE might be one that is a little firmer.
AUZ Price at posting:
4.9¢ Sentiment: Hold Disclosure: Held
(20min delay)