Valuation and SWOT Analysis - AMI, page-73

I missed on the assumption that Aurelia would buy Glencore's CSA mine and build a Tier 1 mining center at Cobar. They may indeed have been looking but it seems Aeris has done enough to get it over the line third time lucky. I am a long term investor in Aeris so all is good. Aeris does underground well (with contractors) and knows how to cut costs and live within one's means. They have yet to do profit well and shower shareholders with copper wealth. Hopefully that is about to change.

Following Friday's decimation of St Barbara Mining I see another scenario playing out. Gwalia now has questions over longevity and Bob Vassie is looking for another asset and saying, 'I don't want a long-dated development asset that's not permitted. I want something that's operating now and they've got a satellite or another mine to develop and some exploration'.

IMO, Red 5 would fit this need. An operating Darlot mine, a really prospective King of the Hills resource and great exploration potential just up the road. Irrespective of what SBM decides to do, it may be timely for them to divest their holding in PEX. Aurelia may be able to get a strong foothold on Peel's register and sit at the table to develop Mallee Bull and Southern Nights. Heaven knows, their plants are right next door.

Watch this space. Stranger things have unfolded.