pros and cons, page-2

Stormboy, most of us have cut back on posting as it has become a combative sport of late (on all threads not just ARU).

But you ask some salient questions, so here is my 2 bobs worth...

SP
- No idea of where it is going, (I am sitting here watching US and Gold) but the road down has not been a lonely one; most stocks are doing it.

Pros
- You have pretty much nailed it, only points I would make are that the proven resource will get bigger and better.

Cons
- The IPL involvement is very positive as it reduces capital outlay very significantly and IPL have got involved as it has significant benefits for them in stabilising their cost base on products they need. It would be reasonable to assume that they had a pretty good look at the likely outcome of the feasibility study prior to going in depth. For mine the feasibility study is to confirm numbers that they would be reasonably sure of. They are not getting part of Nolans.

- Current cash climate is an issue for everyone (this really highlights the benefit of IPL partnership) and is not a NT issue but a global issue.
- ARU will need to raise cash sooner or later but we had spoke of his 6 months ago. Obviously ARU HO think that there is likely to be a material change for the better else they would have already done a rights issue to raise cash (imo). Certainly I agree with Norm in that there will need to be a sweetener and an attaching option seems to be an obvious one.

All in all, things are progressing but the market has not rewarded us. Unfortunately this is a common tale and there is not much else that I can add...

All in my view only.