Ann: Consolidation/Split - AUZ, page-130

The logic / rationale I have previously outlined as to why I am staying invested in AUZ has nothing to do with the SKI period other than referencing in some posts why I believe the situation is different following the LG offtake.

I took some advantage of the SKI SP run up and sold about a 3rd of my holding at the time so I'm was basically free carried until I topped up my holding a little - at the current SP I could get out with quite a decent profit but have chosen to stay invested for some of the reasons I have outlined previously.

i am not blindly hoping for the best with AUZ I will exit a stock even at a loss if I feel it appropriate to do so - I was an investor in AVQ another nickel hopeful - I chose to exit it reasonably early on in its development when there were still a majority of very positive posters on HC - why ? I was concerned about management and the company's ability to fund the project (somewhat similar to many of the sentiments expressed by some on this forum re AUZ) - it also had the added difficulty of the sovereign risk associated with the Solomon Islands and and who controlled the sites re native title. It is currently suspended after a lot of ups and downs.

At the ended of the day the main reasons I continue to be invested in AU are:

* the resource which is in demand and is projected to have a low cost production profile

* The LG offtake which I believe provides a sold foundation for funding discussions and supports the prospect of a successful funding outcome

* For all the negatives re BB and the Board and I acknowledge there are some they did deliver a term sheet from SKI and have subsequently delivered a binding offtake from LG and their CVs would indicate that have the ability/experience to successfully negotiate a funding package.

* A belief LG would have done their homework on AUZ before signing the offtake

I acknowledge some of the less emotional counter arguments have some validity - but at the end of the day I am backing my judgement as I have in the past (which we all have to do at the end of the day) - fortunately I have had over the years more successes than losses - time will tell what is the outcome for me this time. I remain optimistic at this stage.