Long one as I’ve not been around for a few months
but here we go-
This is not a BFS. If it was we would see zany words like ‘binding’, ‘financial’ & ‘statement’.
It is likely a move to satisfy ongoing concern requirements as the company moves to the final full quarter the last raise supported. ( they may have enough to get through Q3 & perhaps part of Q4 but I imagine ongoing concern demands at least 2 full quarters cash in hand ).
No BFS means no finance yet. No finance yet means no SK or NAIF as that is a listed prerequisite for SK’s involvement & NAIF would be in trouble if lending without surety of funding.
I’d say logic demands the following:
1. BFS
2. Finance ( of whatever type- equity partner etc ).
3. NAIF or SK, whoever pulls the trigger first.
Other than that it’s all cart before the horse stuff.
Still no money down from management- Cyclone Steve has shown greater propriety by his putting his money where his mouth is, as decent people do when they care what others think or are just plain decent.
Price assumptions? When we look at the fine print in the above we see return prices based on $27,946 nickel & $93,153 cobalt.
Note has been made that a peer, ARL, has higher assumptions but that is not the case.
ARL Return prices based on $18,900 nickel & $120,750 cobalt*. Rough as guts calc says AUZ is assuming 50% higher nickel return & 25% lower cobalt return.If we go like for like & consider the ratio of nickel to cobalt we see that AUZ is assuming over 30% higher return.
*
https://ardearesources.com.au/downloads/announcements/arl_2018072401.pdfThe C1 costing rising from ~$5.72 to $6.10 of course isn’t fun but at least it gives one a sense that someone is saying it like it is.
Here’s hoping the culture that Mr.Hughes came in to perhaps combat does not overwhelm him ( it must be hard for one person to change the way a group operates but one can hope that if his actions bear fruit that his way of doing things will spread throughout the group ).
With Winter approaching in Oz it surely does look to be the great withering for all of us in retail but hey- isn’t it darkest before the dawn?
Only a few weeks after the mods stepped in to remind people to play the ball there seems to be a lot of ‘no I’m not, you are!’ ( not pretending I never engaged in that myself as I did, many times ).
A Gov. rep’s words aren’t worth much but at the very worst will support sentiment so let’s hope the lady in QL keeps pushing this barrow.
I’ve invested here before & may do so again- the location is good and the state gov. looks to be betting on job creation.
LME pricing is a bit of much to do about nothing nowadays as the centre of gravity is now firmly fixed in Asia & the pricing listed therein only reflects the last few contracts. Also, low base metals prices will cut down the number of new entrants in to the space so it’s not the end of the world. We just all have to stay afloat while the games are played.
When some figure out that I am a poster who’s returned it may help to note that I asked for my suspension myself & also- I’m not a ball.
Last note goes to CycloneSteve- I dig your choice of charity.
Now that the necessaries are done I won’t wish holders luck- instead I’ll wish you all good management & personal health. Unless you treat yourself badly. If you do that then I wish you a few chin ups or a good walk each day to start with.
No use getting rich if we won’t be around to enjoy it!
(20min delay)