Bit of a burnt shareholder base.
Don't get me wrong, I am a big fan of AOU, but last 12 months been a rough ride for investors...
When at 20c in April-ish last year, AOU used 'wise-owl' to 'promote them', a ton of retail punters jumped in and moved the SP higher to the benefit of 10c option holders who squealed with delight and capped the SP from moving higher.
Pretty soon punters realised what was going on, AOU was sold, pushing it back below 20c.
It traded 16-21 for a long time, AOU threw out a couple of announcements, but shareholders got a bit tired of the 'we might have this and might have that', and sold it down again.
AOU then did a CR of $8m through a broker at 16c, private placement, went to a mob of sharks...With no post CR support they dumped it and that was all she wrote for AOU, down to 52 week lows of 10c....
Still a few stale longs. Some investors got burnt and if they still have stock want to sell the rally, usual rules. So at present the selling is hat overhang.
Can't blame them.
IMHO the strategy adopted by AOU 12 months ago was a bit naive. They literally put the cart before the horse.
But the good news is I think they have had a reality check and now focussed on what they should have been on top of 6 months ago, proving up Saints and Nepean remnant resource (13,250t on nickel metal). They get the met work done and JORC, and these 2 deposits alone will no doubt go to the big neighbour to crunch through their concentrator. Aidan said in announcement this morning, fast track, and I believe same is happening for Nepean remnant, which would be super easy to bring into production, open pit, easy peasy.
Nepean Deeps was their poster child, but they couldn't see the forrest for the trees on this one. Nepean remnant resource is the money shot for them, which will allow them to pursue the deeps, and also lithium. Finally clicked with them by the looks of it.
I have done a lot of DD on this company. Yes, I talk to them directly as well. Hey, they are top blokes, the past is the past, lets move on.
IMHO strategy was perhaps sub-optimal, but now they have true focus. IMHO they have a serious Nickel resource over multiple locations, just a pity its taken a HUGE rally in nickel price, and the burning of some shareholders to get their eyes back on the prize.
Failing something stupid like the Mad Russian pushing the big red button, I will make the call that we have seen the low in the AOU SP. They know what has to be done now and they know they owe it to investors to prove up the nickel resources, get an off take done, go into production and bring in the cash.
DYOR & GLTAH!
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