The biggest issue for AVQ is the resource which is likely to be...

The biggest issue for AVQ is the resource which is likely to be defined at San Jorge is unlikely to be economic. I am making the assumption here that the resource will come out at around 1% Ni (based upon the released drill results), which is about half of what is needed for a direct shipping operation. Kolosori will be a better resource than San Jorge (the historical mineral resources for both San Jorge and Kolosori show this), so AVQ needs Kolosori back to have any hope of getting a direct shipping operation into production. Keep in mind AVQ is now months and months behind the timeline they released at the end of 2016. In the end the outcome for AVQ will be driven by the mineral resources not by what SMM are or are not up to. SMM can take the long term view as they have the resources to do so. AVQ do not have that ability, so they need to secure Kolosori as fast as possible. Their other big issue is not having the funds required to progress the project. It seems unlikely they will raise much money out of the Rights Issue due to the fall in the share price. It is amazing that given the pressure on the rights issue and their tight cash position that they are not seriously cutting costs. That tells you who AVQ is really run to benefit.