Sorry you don't feel AZY is a longer term hold. I disagree somewhat with your logic about this LT potential but you raise valid points.
I agree AZY is a cash burning operation in its current phase. IMO comparing a "regular" business to an exploration company is a bit like a comparison of apples and oranges. Ultimately, while both want to make money, the time frame and uncertainties in the models are very different.
Remuneration of exploration company management is nearly always a vexed issue. To get quality, as with most things, requires above average payment. I agree $420K seems high but the base salary is $256K which is similar to that of another company's director that has been mentioned on HC. There are complaints/snide comments about this person's salary as well.
The actual remuneration package:
Also note the remuneration package is due to be considered and voted on. If you don't like it... They may register a strong no vote and act accordingly - or not.
IMO it was unfortunate that the main investor focus shifted from Citadel to Minyari where initial high expectations were not supported by results and has translated into a savage re-rating of AZY.
AZY hold some 3000 sq Kms of prospective land outside Citadel. Minyari was the most obvious of numerous known targets. AZY is going to need to be well funded to explore this large tenement position. Hence, IMO, Resolution 4 is being put up to the AGM.
Rio IMO are believed to be looking (I think this is actually a company policy but don't have a reference) for a stream of Tier 1 50+ year deposits to set them up further into the future. IMO they would not have entered the Citadel JV if it could not have a strong potential to be viable long term. Calibre has never been touted as having either high grade gold or copper. There are higher grade sections at Calibre but the overall grade is not likely to be much above 2 g/t Au equivalent and there is no guarantee it will be mined. The risk reward of exploring. Having some significant IP anomalies near Calibre Magnum will make for some very interesting exploration in the next 6 months.
Can a low grade deposit compete with high grade DRC Mongolia? Cadia? Boddington? etc or are the following too low grade to be economic (Porter GeoConsultancy figures for Chuqui etc)?
(At current Au and Cu prices (US $1340 & $4750 resp.) - 1 g/t Au is roughly the same as ~ 0.9% Cu)
You said "When fuel rises and the AUS dollar gets stronger"... Sorry can't resist this:
We'll all be rooned' said Hanrahan if these things don't stop going up.
Then in gods good times the prices stopped going up and the dollars rolled in finally justifying Roger's salary (now in the millions) and ..
we'll all be rooned said Hanrahan if the government wants to hit us with windfall taxes....etc
Poorly paraphrased from "Said Hanrahan", 1890s Oz poem by J O'Brien.
It is a very cyclical industry!
AZY Price at posting:
3.3¢ Sentiment: Buy Disclosure: Held
(20min delay)