Invitation to lunch, page-38

There's a couple of points in Fosss's reply that are sort of concerning.

1. By Nov 2022, I'd expect Andy to have had a fair idea what sort of ounces would be contained in the mre. 500koz v 175koz is a huge discrepancy. Personally I expected at least 750koz to be announced judging by the drilling undertaken. Obviously AT decided to use an mre fully restrained by a 1gpt cut-off and only down to 200m with a pit shell design rather than follow the normal trend of including every possible ounce that was allowable under the current 2012 Jorc code, as others tend to do, with many using a .4gpt cut-off.

I still think the company should've included all possible ounces and then shown where the 175koz pit design fits in to it as the most advanced portion of a larger deposit. 100km of RC and Diamond drilling has been drilled by NXM, so showing the full extent of what has been achieved from the time and money spent over the years seems quite fair and reasonable to me, especially as the company would be well aware of this and could've easily included it imo.

It feels like the mre announcement was intended more for NST than shareholders as though a deal was a certainty, though the market has reacted quite violently to the mre.

The announcement missed the mark and subsequent announcements and presentations have also failed to halt the sp slide as they do nothing to clearly outline exactly what NXM has achieved compared to the metres drilled and cash spent so far.

I guess many investors only see the 175koz and the target ounces and assume the company will need to spend multiples of the money outlayed so far to achieve the magical 1moz threshold.

By announcing they will target other areas and the eastern states assets rather than increasing the jorc ounces has scared many away as right now NXM seems to be a long way from announcing anything of substance.

2. The possibility of NST acquiring the land and paying enough for NXM to maybe distribute a 10cps dividend and NXM maybe spinning out the eastern states assets into a separate company- Many here have speculated on such possibilities, me included, but it was just speculation. If the above was strongly considered, as I assume it must have been to mention it at the private gathering, why wasn't that announced via the ASX?

So what constitutes insider trading?

Undertaking a private meeting with brokers and select investors and telling them of possible plans going forward that the rest of investors and shareholders are not told of, despite presentations being given after the Nov meeting, seems to be pushing the boundaries imo.

The fact that the events outlined at the meeting didn't eventuate doesn't really change much imo, as information was still given to a select few that I would've thought contravened ASX regs.

AUZ were raked over the coals for a tweet by Ben Bell, who was sacked as a result and the company fined around $400k recently. Bell's info was wrong and misleading it appears, but the fact it was unauthorised by the company was of little consequence to the ASX. He was a company representative and the company has paid a price, both financially and reputationally as a result. So did BB, as his service was terminated by the company.

So does a meeting at a public establishment between a company rep and a small group of brokers and investors break any rules?

By putting the story out there on a public medium as Hotcopper, I won't be surprised if AT gets a 'Please Explain' request from the ASX at some point.

NXM will soon be rattling the tin again, unless there is a partial land sale or similar. The company has added to the slaughter of the sp by firstly delaying the mre announcement and then releasing it in the form they did, imo.

I've acquired a few since the announcement, starting at 11c and down to 5.3c the other day.
I'm hoping the company at some point clarifies just where they see the future for the gold assets and expenditure required for the next couple of years.

Lately NXM seems to be more interested in promoting their potential battery metals future, which is fine but so far investors aren't so keen to be waiting many more years to see just what is contained in 'the right rocks' on both sides of Australia. (Incidently, OZM is also using the 'right rocks' manta now)

It feels like NXM needs to do something different than just plod along and expect the overall market sentiment to change and give them a lift. I've always considered AT to be conservative and thorough, which is sort of borne out by the mre announcement somewhat. Certainly no hyperbole. Fosss's posts maybe shows another side.

I hold shares in another company that is run by a 'straight shooter' who usually isn't prone to overstate or exagerate the situation. It has also suffered badly and is just showing signs of recovery after a near death experience. Maybe sometimes there is a need to show the company in the best light to attract the attention of potential investors, otherwise it gets drowned out by everyone else clamouring for attention.

Just my musings after nearly 4 weeks out gold detecting, without internet or phone service.
I'm only just catching up on what's been going on with the market.

Feel free to offer up an opinion on the above.

Disclosure: I hold NXM and OZM. I am a fan of AT generally and have been buying up both companies. That said, I think the mre announcement was a major fail and continues to erode market sentiment that no amount of presentations will fix. Best chance of a swift recovery is probably a left-field announcement imo.

May the new financial year be the catalyst to lift the market's flagging spirits.