Had to tend to other priorities like my Business yesterday so unable to respond to your post JD. Its great that you live an work in the industry. Exciting life for a young person and with a keen interest in Stocks and Markets. I'd say you are about 30 ish given your young family. Reminds me of myself once upon a time. One of a couple of differences being that I have been investing professionally for some 30 years. Most likely as long as you have been on the planet. The other difference is that I have worked in the finance industry for a a good chunk of my working life.
With respect to this point and yourself and your chosen profession. This does not make you an expert or indeed more experienced in investing than anyone else. The fact of the matter is you are not an Analyst, an Accountant , an Auditor or indeed a Finance or Senior Banking Executive. Reading a lot of the posts here on AUZ , there seems to be a common belief among posters that your esteemed chief executive BB and his SKI counterparts will in some way be calling the shots when it comes to the ' money ' or finance and funding side of things. Sure if it was a pure JV , then they may have a little more say in how things are structured and this outcome being purely off the back of SKI's financial connections and strength. However it is also likely that this won't be the case and there is a good possibility there could be many levels of funding attached to support the long term growth and developments of AUZ. Heck there could end up being a consortium of lenders comprising senior and subordinated loans comprising convertible notes or a host other mezzanine structured loans. The truth is atm - none of us know until announced. However this should not stop investors particularly in an open forum to discuss the ultimate possibilities. It is not speculation to offer ones opinion and indeed it is not unsubstantiated when it is based on ones experience and knowledge in the finance industry.
In your post you mentioned how the MD isn't a fan of share consolidation's . I would say who cares what he may think. These are only his view at that point in time, and he has been well known to get himself into hot water in expressing other views from time to time. You only have to look at how many times the ASX and ASIC have had to get involved to ensure correct disclosure's and regulations are followed.
One thing is for sure in all this , and that is the Banks , Lenders and Fund managers love consolidations that ensure stable and credible SP's , and a ' penny stock ' status with limited substantial future capital raising potential would not be in their interests. This is particularly evidenced by the usual Big Business practice of stipulating SP Performance Covenants over their Debt funding arrangements. Whether it's SKI's lenders or not. Given the recent history in Mining performance and risks overall for the Banking Industry - there is no doubt in my mind they will be talking about the SP volatility and future funding limitations offered from a low SP. A consolidation will most certainly tighten the register and allow more reasonable fluctuations in the SP which inevitably will have less impact on the Equity side of the balance sheet. Make no mistake folks that in reality these guy's the Analysts , Accountants , Auditors etc.... will say ' Jump ' and BB and Co. will undoubtedly say ' How High ' That is what a BFS is all about. It is not just simply about an option deal between 2 of the ' Mortgagor's ' .....its about all the other interested and vested parties to the deal.
You mentioned I don't have an understanding of why the SP of AUZ or indeed other stocks you mentioned. I wouldn't expect you to read my posts elsewhere JD given your attachments here, however that is a big assumption on your part. In any event they are out there and I try and read as much of other posters views as I can. Much better to read than to write - and a whole lot quicker as well. Take AUZ for example. You mentioned that I have only just posted. Not exactly correct but near enough. Did you also know that I have probably read every single post on this company since over a year. I have also traded it a number of times with much success. I don't need to post though for obvious reasons which can be seen on these threads. Seems no one is allowed to have a different view. So given this , I have been very respectful of the emotive fellow posters of HC and stayed out of the discussions in general.
Proof of my intent in not down ramping fellow investors or their investments is the attached post I sent to a fellow investor and whom I have mutual respect for.....
(20min delay)