big potential , page-6

lets hope so. I believe the main driver behind SMY's incredible run has been their resource upgrades. I also believe the delayed run in AUZ has mostly been due to the delays in upgrading their resources. The market seems to react directly to these sorts of announcements. FMG and PDN have produced what?? Look at the market caps now.

To get a resource upgrade on what they are currently mining is very significant IMO. I guess the market needed comfirmation of more resources before moving AUZ of its low PE. MCR suffered from this for years. I guess the market wasnt going to let AUZ off a PE of 3 or less until they proved they had more to mine.

I also think that their aquisitions have been little more than attention grabbers to date. They have just alerted the market to the fact that AUZ exists. A little research quickly showed an exteremely cheap nickel producer as the bottom line.

Results from area 57 will be very significant IMO as it will essentially represent an extention to the resource they are currently mining. IMO this can be the biggest driver of the SP in the short/med term.

The decision to mine at Marriots (or at least a positive BFS) will also be significant, assuming they decide to aquire it which looks likey.

Im not too sure about the gold peronally. I believe they should focus on nickel before it starts to turn for the worst....which I hope is still a long way off. Gold is very maginal these days at best and it takes a pretty special set of circumstances to pull it off. The announcement to go ahead on the gold will only serve to boost the share price short term IMO.

Their most significant aquisition so far IMO is location 45. It borders ground that was explored by View (now majority 70% MCR). View had proven up a resource that was known to cross the boundary into Location 45 when Harmony owned it. View were 100% owners of the Carnilya tenements next door on which the resource existed and was negotiating with Harmony to jointly explore and extract the resources.......it makes sense to me that this arrangement may come up for consideration again. MCR has shown it is now on the path of aquiring/tieing up the Kambalda area, and with AUZ right next door to MCR's next big mine, it may come into play. BTW I own shares in both AUZ and MCR so I am biased towards this scenario obviously.


Long story short, AUZ can be they next SMY or IGO if:
1) They are not taken out
2) They increase production quickly & therfore cashflow
3) They need exploration success on their aquired projects.
4) Obviously, all this has to happen while nickel fundamentals remain strong

Number 2 is very important so we dont see a repeat of 18 months ago.

This is just how I see it. Cheers.