Ann: Trading Halt-AVQ.AX, page-267

That's a good point Rusty. Everything else is really white noise and discussion topics on people's pet likes and dislikes.

Is it fair to say simplistically that:

At the end of the day the bottom line as I understand it is the business model proposed in simple terms is to dig the raw dirt (containing the ore) and sell that on a tonnage basis to a reseller (Guvnor in this case) . The price is set by the market. So all the talk about what method is used to extract the nickel concentrate and the $$ needed has nothing to do with avq because we are just proposing to sell the raw dirt and get paid for that. So how someone else extracts it and what they use it for is largely irrelevant for our purposes.

So the simple mathematics is how much dirt can we dig up and put on a barge less how much it costs us to deliver it from the ground to customer less our overhead and that gives us a sustainable profit.

this profit will set the MC of the company and hence the share price.

So the arguments should really centre around ( excepting the PL issue)

1. What is the size of the resource. ( how much dirt do we have avail to sell)

2. What is the ore grade of that dirt. ( what is the price we can get for the dirt)

3. What are the set up costs and ongoing costs to dig the dirt.


I will have to go back and try and find your back of envelope calls that I know you put up sometime ago.


Cheers