Co metal vs Co sulphate, page-19

Blueskyone –

I don’t see any capital raise this year – based on they don’t need it yet, and per my conversation with Ben Bell CEO that I posted on HC about 3 months ago that they did not envisage any further capital raises in 2017
(They did after that do one specifically to fund the remaining 25% buy out of MLM – as I think a quick opportunity came up they saw MLM needed money and figured that was go great time to strike - which it was)

My sense is that they will wait as long as possible into 2018 before another capital raise – i.e after they have
- sent samples to the 9 or more potential off take customers.
- Got some or all of off- take agreements signed which may include specific finance partners for Sconi. (which should hopefully happen this year early next).
- Got the share price as high as they can with road shows etc which they are doing at present
- I think they will dilute as little as possible and take debt using the signed off takes to finance the Sconi plant

Given Ben Bell CEO’s negotiating abilities to date – I have 110% confidence that he will do the bets for shareholders and arrive at some truly great deals for AUZ shareholders and remember he is a big AUZ shareholder as well (he’s got skin in the game as a shareholder too - so his interests are fully aligned with regular shareholders) I believe the deals for Flemington and Sconi 1 and 2 each of them very different deals will in the fullness of time be viewed as some of the best mining deals done in the decade if not the century.

As I have said I know of only 2 non DRC companies, that are AUZ and CLQ that can meet the time, volume and quality of cobalt sulfate the car van and truck companies need by end 2019 when the EV models already designed and prototyped are due to really start rolling off the mass production lines big time.

Note VW’s comments – after no one cobalt sulfate supplier was prepared to dance to their usual Request to Proposal.

“Indeed, VW is open to discussing “potential forms of co-operation,” from long-term offtake agreements to “further strategic models”, according to a copy of its tender document seen by the Financial Times. “ i.e if he smart Ben may get some of these large car companies to finance the Sconi plant - they have got the money but not the cobalt

Ben is negotiating from a position of strength and he is smart enough to know it. Keep the faith I have no doubt he will excel as he has done on everything to date