Ann: Target's Statement , page-7

Just read the Target statement, some of it is fair comment but there is some bullshite in there, and a lot of it is often repeated. I guess the theory is say it often enough and it will be accepted as true!

1. Only AZX have the ability and expertise to develop BBling. Really?! God only knows how all the other thousands of gold mines in the world manage without AZX! Good start, big up yourselves, repeat, and some might believe it
2. 'The Technical Expert has assessed the value of Auzex's non-Bullabulling exploration assets in the range of $9.2m to $25.0m' - Really! Well the market gives it diddly squat value but it's good to have your 'Technical Expert' slap a high value on it despite what everyone else thinks.
3. Comparing SP's after the bid can be misleading. Bidders SP normally falls, targets normal rally. No difference here.

4. Expert also says Disadvantages to AZX are 'An increase in the value of Bullabulling will not make the GGG Offer fair. The likelihood of further dilution for Auzex Shareholders in GGG post takeover. Diluted participation in future growth of Auzex's asset portfolio.' Well the advantage to having BBing in one entity is clear and as for dilution, err, GGG are sitting pretty with cash, it's AZX who need to dilute it's shareholders to fund BBling to the tune of $25m, not GGG.

5. AZX still hypying on about their sudden desire to drill 194km of exploration holes. Funny how they intended to do that with one rig until GGG made a TO offer cos they couldnt get them to increase the rig count. Yeah sounds like AZX are the experts in exploiting gold mines - NOT Interesting they are trying to lay the blame on GGG for the delay in this 194km drill, couldnt make it up!

6. Was interesting to see AZX have put up GGG director options, most of which are higher than the current SP. Also interesting to see they awarded to themselves, 14million share options between$ 0.15 and $0.2, a very big SP discount. In effect they are taking a shed load of money out of the company by issuing themselves cheap shares, another way of putting that would be robbing the shareholders - Shame on them and if you keep them as your BoD, good luck.

Cutting to the chase. AZX failed to recognise how good BBling can be and wanted to snail pace one rig it for years. GGG got miffed with the lack of focus and had no option but to launch a TO or let it meander. AZX got a kick up the rear end and now have pretty much changed tack to what GGG wanted to do all along. GGG clearly had the vision for BBling and certainly the right strategy. AZX have arrived at the party quite late but are now saying they are focused and eager.

Upshot of this is the TO may fail and we are stuck at an impasse. I have no faith in AZX from what I have seen, and I have a particular dislike of the millions of cheap share options they have grabbed for themselves. However I'm a GGG SH, not an AZX so you can keep them and hope they do the right thing for a change. Recent history tells me that wont happen unless GGG can keep them on their toes.

Despite all of the above BBling is a great asset and will be worth holding shares in the medium and long term, short term I think it might take a dive on Monday.

Temu