smoke & fire , page-15

The basis of the $12 million is clearly stated in the annual report - see Note 33 - p82-84

The first $4.6 million related to the Arccon acquisition and had to do with the fact they issued shares to acquire Arccon at $0.20 whilst the AZG share price was actually $0.26

The remaining $7.6 million related to the CIA acquisition. They paid $2.1 million for CIA but acquired $9.7 million in net assets in return.

Neither of these gains related to the operational performance of the business, they are accounting gains.

I don't think I need the CEO to explain these results, as there is nothing 'wrong' with them. I'm not suggesting they have done anything wrong, I am merely pointing out that the underlying operational performance was far lower than the reported profit --> therefore, it's hard to know whether it is a bargain or not until AZG put out an actual profit forecast.

I'd be interested to hear what persuaded you jtucker?