I am not sure how many shareholders fully read announcements, here is an extract and interpretation.
So, the way I read this is as follows- They are raising $3.7 million dollars
- $750,000 dollars is to expand the management team ( Not live within your means, reduce staff or conserve funds, Oh No, lets spend more)
- $1 Million will be used for working Capital ( So more of the same and NO cutbacks /
The machine lives, its alive)
- $950,000 will be spent increasing the size of resources (I thought AUZ was investment ready, clearly a failure by management)
- $1 Million will be used for studies relating to finance. ( this failure to understand the task has resulted in 3 years of wasted opportunity)
These above costs being justified for capital raising are an outright failure by management.
- Management failed to prove up the necessary resources to enable a required life of mine, a gross oversight.
- Management failed to understand financial requirements required for funding the Sconi plant, a gross oversight.
- Management failed to have the correctly skilled people in leadership roles to get the job done, a gross oversight.
- Management have stubbornly maintained the company expenses above the financial ability, a gross oversight.
- Management have refused to salary sacrifice or reduce wages and salaries, even through the Covid crisis, a gross oversight.
- Management have irresponsibly built and maintained
Mini Test Plants when there were other (pay and go) options available, a gross oversight.
- Management purchased property in Greenvale for housing, not knowing they had a viable project with all approvals, a gross oversight.
In summary SCONI is NOT investment ready- They are going back to drilling, what if they cannot increase the resources at a financially mineable grade ????
- They are going back to finance studies and increasing management ????
Now sadly, this is not something I ever wished or hoped for, (I was a substantial shareholder in AUZ,) I have always wanted AUZ to prosper and provide Australia with national income. THAT IS STILL MY SENTIMENT.
It upsets me and makes me angry that such incompetence could prevail.
There comes a time when you literally RIP OFF THE BANDAGE, and expose the sepsis below.
RED
(20min delay)