Good questions Bons and I feel your plight, you have every right...

Good questions Bons and I feel your plight, you have every right to question and I find that healthy. I would take it you got into AAR similar to my first entry. I entered on a run up and took a position at around high 8's, it ran to around 11 and came back under my entry point.

I too was left wondering so I hit the books to see what I was missing. What I found was an amasing long runninng story, that I decided to be a part of. If I miss anything let me know, I am happy to give my point of view. It is also good for me as it makes me look at my own data and reasoning again, which only strengthens my resolve.

As to whether you should take a loss and pursue others that are moving at the moment, only you can decide that.

Your questions:

"Bitsy sort of assets, not particularly valuable in comparison to peer explorers;"
Mandilla has proved piece meal but highly profitable and will again. This is a valuable asset and has enabled AAR to continue PFS of Koongie Park and pursue major assets such as Victoria River Downs (VRD). Mandilla has enabled AAR to do so without the need for further cap raising or debt of any kind let alone crippling interest bearing debt that others accrue. Mandilla is alos completely unhedged so is exposed to the higher spot gold price unencumbered.

Koongie Park is also a valuable asset even with the drop in Zn price. The in ground value (IGV)of this asset is worth around AUD$1.4b at todays base metal prices, at 10% of IGV this value AAR at around 30c. By on my estimates (based on company early resource statements), with the Atlantis extension at Koongie Park and only the lower figure of 50Mt resource estimate of VRD the IGR is over AUD $13b which values AAR at $2.65 p/share at 10% IGR.

These are not "Bitsy sort of assets"

Low average management;
I agree only with one of them. The balance of management I regard highly as does the wider industry. Don't base your views on the performance of any one person. History has shown they normally move on or are moved aside. Once AAR develops further this aspect will not be a problem.

"No apparent plan;"
I disagree.
Now that I have reviewed what the company has been doing at depth it is evident they are developing slowly to avoid the need for finance or cap raising in the development stages. This is a slow method but it creates a very strong base. They have been quite methodical in mining Mandilla and then using funds to progress KP and aquire major assets such as VRD.

I do agree they leave it up to investors to review and find this out for themselves rather than openly state what they are doing.

The communication/news flow is very poor and I believe the major reason AAR hasn't been a 'popularist' stock. I also believe this is about to change once the PFS and Mandilla are announced. Any major news of KP or VRD and AAR will go back up very quickly and will recieve much needed wider broker support. Watch FP in particular.

"No obvious backers."
See above.


I will add this company has solid cash backing, is self funded, has no debt, no likelihood of any immediate cap raising has excellent prospects and the majority of management is sound and respected. If what I believe is going to occur then I believe a strong JV will be struck and the Pillara plant will be utilised for KP and VRD will be developed.

I trust this answered your questions, and please forgive typos I can use a spreadsheet but I am a lousy typist.

Cheers and have a great day.
Dhuy