Anger is a strong emotion , especially when it comes to trading...

Anger is a strong emotion , especially when it comes to trading .

I was the one who asked the question about WA assets spin off at AGM & I don’t remember the clear answer but remember they are working on structure and separating the non core assets and Shareholders will be given benefit .

After reading the announcement two things I can interpret ,

Current value to shareholders is 18,000,000 @.20 = $3.6 mn which is investment of existing owners of AUZ ( all of us) in new company . If the value of Norwest multiples 5 times it’s worth $18mn to us . If we decide to sell out interest in new company at proposed IPO price all of us will get approx $3.6mn / total shares on issue times our holdings - which comes at .00134 approx .

Also, option to existing shareholders to invest in new company is another advantage . I assume it will be nice if get a discount from IPO price but I can live by that and pay market price if I have faith in management and long term vision plus I indirectly own 28% of the company being AUZ shareholder .
( Imagine if SK1 thought why agree on an option price of .12 cents when company’s stock has been trading at .09 to .12 cent levels , especially if we buying all output on Sconi in future plus getting 20% in company. It’s not fair , I am angry and I shall get a discount )

What I like is they have done three significant deals in 12 months ,
Bought Sconi of MLM for less than what we are getting paid for non core assets in WA and also monetised the Sconi purchase by raising Institutional funding last year at .085 cents and raising $15mn and then bringing SK as off take partner & now realising value of Non core assets.

Hope they continue to impart their wisdom and deal making skills to the new entity and help them grow and will be nice to have draft BFS release soon. Tired to see no movement in such a great stock and the tiger is about to Roar

G luck to all shareholders .

Views are my personal interpretation and not a financial advice or analysis and is based on info in my head and hasn’t been cross verified from previous articles

Prediction close at .087 today. .090 next Friday and .110 end of August ....

Cheers & have an awesome day
trader guy