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Scarpa

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04/11/18

11:02

Post #: 36382715
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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

AIMO. Enjoy your weekend fellas
LA

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I suspect drilling is continuing now not for identifying further resources as the priority, but to get the data required to help pit design so as to allow the most cost effective methods in drilling to be done so as to feed into the PFS. Obviously also helps MET tests and other things but I suspect this is about understanding the ore body now to help for the pit design in the PFS. They have enough resource for mining in the measured and indicated category at Roche. All IMO IMO IMO

AVZ Price at posting: 7.6¢ Sentiment: None Disclosure: Held
9 Upvote

0 Great analysis

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