I spoke to Jim recently after hearing some not so good news.
AZC are mining well however their processing is having trouble in the very last processing stage. A lot of the minerals are ending up in the slurry pit, which will be reprocessed later, once the problems are rectified.
As Sandminer said long ago, I get the impression there are many quite inexperienced workers.
I asked Jim was the plant deficient and of it would require replacement or more CAPEX and he (unconvincingly) answered "NO". Jim said they need to iron out the bugs, which includes worker skills.
Jim said when they become cash flow positive, they will advise the market.
The problem with AZC is they are strongly community based and the information about what goes on is very very leaky.
Thus the sell down late last year.
Jim was still bullish on their 100,000 tonnes a year target, which comprises of 35% zircon, 10% rutile and 55% liminite (?)...
Jim said they are currently receiving $1000 tonne for zircon, $600 for rutile and $100 for the other one.
All I can say is I was not impressed and sold my AZC bought at 16 cents and ploughed the $ in RWD.
Still holding the shares bought at 25 cent average.
AZC Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
