Thanks for the pump up Bowral, not sure its deserved, but since you asked nicely...
My thoughts....
I believe it will play out somewhere in between what Invest and User says....We will succeed, but we won't be bigger than FMG...not in the next 2 years anyway
SJ - PL, ML etc
The fact the we already have the PL at SJ is a great confidence booster to me personally. The drilling results are getting better & better. One of the latest holes has a 5.4m seam of 1.85%Ni!!! This hole lies at the Northern edge of the currently drilled area. What lies further North??
Kolorosi - The Court Case & Appeal
In simple terms, I believe the court case was a giant first step for the Solomon Islands to step away from corruption and coercion. Don't get me wrong, money will always buy influence in a poor country, but tell me with a straight face that there is no corruption in Aus!!??
The court case exposed wide scale bribery and blackmail by SMM.
The appeal verdict was akin to giving a primary school kid a year of detention for making a spelling mistake. If you read between the lines, the result was more than likely political. By upholding the appeal decision and telling SMM to piss off, they have allowed SMM to save face (and a huge damages bill) and not offend the Japanese government. And hand Kolorosi to Axiom... all at once. And all above board.
Kolorosi - SAA, LOI, PL, ML etc
I'm no legal expert, ill leave that to our resident legal eagle, Fuzz. I've read all the documents, verdicts, opinions, etc, but to me, the intentions of the SIG are clear to all. They want & need the cashflow that a mini SI mining boom would provide. And no doubt there has been/will be some issues within the SIG. ie, A few months ago, the SIG sacked an Cabinet member formerly linked to SMM. (Clearing the path??)
Business is business. Axiom is the quickest & ONLY solution to avoid further delays.
Dilution
Due to the COA verdict causing an unexpected delay, and robbing us of the $5million held in escrow for AVQ on a positive appeal result, a "Sophisticated Investor" (Rich dude) was the required to keep AVQ afloat and avoid a slow and damaging capital raise, at a reduced rate. The attached options given to the investor, while generous, will provide much needed cash to the company, if and when the share price rises north of 30c, 40c, 50c, 60c.
I believe the key question here is.... Will the options be partly or completely exercised once in the money???
I think that even though it would be prudent to calculate ALL options being converted, when looking at forward estimates of MC, in reality it would not benefit the Soph Investor to dilute his own sizable stake all at once. Why cash in (and then sell your 30c oppies for 35c) when you have 10 years???
Sure he would probably take some chips of the table, we all would in the same situation. But all of them?? I'm sure he would discuss a plan with RM. He would be silly not to!
RM's Salary
I believe with the hindsight of the past year, RM is currently overpaid. But if he lowered his pay substantially this could be interpreted as a negative signal by the Market. If the share price was then effected, the ability to raise capital & the bigger picture could all be risked. For what??? A few hundred thousand $$. To simplistic. Similar issue to complaints regarding politicians pay packets. Pay peanuts...get monkeys!
The Future...
I started buying AVQ nearly 4 years ago, not just aiming for a 5 bagger, (I admit I will sell some at $1... I have more than half my cows in AVQ's paddock, G'Day Pie Farm, Love your Work!) but because of the 20% share of profits handed to the locals through AxiomKB. The world has been playing the Capitalist Globalization tune for too long, the punters are wising up. Once we get our ML back for Kolorosi... you watch the offers pour in!!
Grub
