Appreciate the reply, Yes I agree, I don't think that money...

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Lil Abitrage

36 Posts.

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03/11/18

00:12

Post #: 36376115
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Originally posted by Has15 ↑

Originally posted by Lil Abitrage
Hey fellas,

I know this topic has been beaten to death and this conclusion has probably already been made but I was thinking as to why our inverted Uluru is still being drilled, even with the resource being largely proven. For many of us, the end game is a takeover with a lovely premium. This is possibly what management is looking for too. Maybe, the continuous drilling is an attempt by management to prolong the exploration stage, whereby the drilling expenses are comparable to paying for a put option-- an option to postpone development, create interest, and eventually sell off this beast to a suitor. Even if production has a +ve NPV, it is possible that management don't want to go down that path due the the time it would take to unlock the value.

So far, the strong interest from potential bidders hasn't really been seen besides a couple MOUs. If the takeovers do start to rolling in however, it's all about bargaining power. For us to have that power, we are going to need credible alternatives to drive up our opportunity cost. The question is, how do we do that without alternative takeover bids?

We all know we've got the nuts here (keeping the poker references alive), we just need to create reasons for a suitor to call. By announcing the possibility to mine, we may have just managed to credibly create urgency amongst the interested parties, with the most optimal outcome being a bidding war.

Not sure if any of that made sense but here's to hoping our strike price is well above our share price if a takeover ensues. And if we go to mining, i'll be here for my dividends clear.png

AIMO. Enjoy your weekend fellas clear.png
LA
theyre only completing 3 more holes for metallurgicals testwork. 2 met bores were completed before that. Preceding those holes, the focus was on infill drilling to maximise the confidence level of the resource (i.e. measured resource) and also to best define the pegmatite below the dam (region where it is expected to encroach to surface). Proving this has significant implications on both Capex and opex costs, getting measured resource at surface is hugely beneficial and will aid in reducing the strip ratio considerably.

it does hurt to see the spend, and at a point I did have the same notions of wanting to halt the rigs but they do provide incredible value in dialling in the DFS to be the best possible representation of our fantastic asset.

Anywhoo rigs should be done and dusted by this date, probably will shift over to 4CE, pending announcement

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Appreciate the reply,
Yes I agree, I don't think that money spent on what you've highlighted has been wasted at all. Been on weekend mode all day so thought id share some left field thoughts Enjoy you're weekend!

AVZ Price at posting: 7.6¢ Sentiment: Buy Disclosure: Held
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