Hi JD
I have spoken to some analyst in the mining sector.....AUZ is poised in a very good position and heading in the right direction.
People on HC seem to have a very short and narrow view of where we are actually heading. On a daily basis, we are going to see a lot of shorting and manipulation....that is normal, especially now as to the binding deal. Cannot control that....it is what it is...
As investors we need to look at next stage of AUZ, the BFS....this is next hurdle for AUZ...currently I believe we are on track, and things should sail quite smoothly for that. But where the challenge for AUZ I believe is, will be to meet the condition of raising the finance for the plant....
We need to look at management, and see what they are going to do to raise capital for this. I know BB has stated that he wanted to get a partner that will assist in building the plant, which I guess what the 19.9% offer was for...this is a start...But still need $400M more.
Looking into the management, Dominic M is also a director in Terrain Capital, and has expertise in raising capital. So I believe AUZ will need to look at private fund houses to raise the capital for the plant....and hopefully we have top management for that.
With cobalt still being fairly volatile in price (Could drop based on more supply coming to market from Glencore (DRC), the banks will be reluctant to invest in AUZ....so they will need private fund houses to raise the capital for the plant. 2 ways that is possible, but we don't want anymore dilution, so IMO AUZ may have to look at debt finance.
Yes AUZ have the cobalt, and yes the demand will grow, but where AUZ is also poised to win in the race is with the Nickel. The race is already started for higher nickel content batteries. The main demand is increasing for NMC batteries...Nickel;, Manganese Cobalt....and the chemistry structure of these batteries which obviously also has lithium...but the play now is and continue for next 10-15 years will be for a higher nickel content in the NMC batteries....minimising the manganese, and cobalt due to high prices. (LT demand)
IMO, AUZ management have and are doing a great job....but they need to point the company in the same direction as Syrah Resources - SYR, and do what they did way back in 2009-2014....(Some research will be required into this by investors)
I am a long term holder in AUZ, and do not pay much attention to 90% of the posts, but if people were to spend time researching as to where we are heading and where AUZ is poised, they will and can see that they can benefit greatly in the coming future by holding onto this share for the LT.
I do read your posts quite often, as I like what you have to say.....
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