unassuming aurora takes home the gold , page-9

I dont hold AZZ and wouldnt.

But thats my point a company that was clearly underperforming on many levels managed to raise above the market sp. What makes Jon thin AUT couldnt at least achieve parity CR or above market CR when the deal involves a 50% increase to reserves in some of the most prime acerage available.

Im in no way shape or form bagging the deal. The deal was magic. But i am bagging managment for not factoring it in the the CR price.

Yep i reiterate i think they acted like a pack of dumb asses in relation to the price for the CR.

They have been MASSIVELY over subscribed on every CR and to think they wouldnt be on this one when your about to dangle a 50% increase in NAV and EUR, they obviously either dont believe they can sell it, or they want to keep rewarding instos with cheap deals.

As for the sour grapes, I wrote to Jon on friday expressing my concerns, but also congratulating him on a brilliant job with everything except the price of the CR's. I dont think thats sour grapes. Its imo communication with managemenet and other shareholders.

AUT managment seem to have made it clear theres more of these to come, and i think AUT holders need to express, that they expect more appropriately priced CR's, and that the use of a simple VWAP formula is unnaceptable.

CR's should always be aiming to achieve the maximum price possible, and it is simply unnaceptable not to.

Thats my point this CR went no where near achieving the maximum sp possible and that is a failure of any managments primary objective, which is to increase the value for shareholders.


If we sit back and say nothing , then i think your going to let them establish a pattern of deep discounts. If we express our concerns, clearly managment will at least take it into consideration.

So i urge all holders to write to management, expressing gratitutde for a brilliant job, but also requesting they take the price impact of any acqusitions into account when setting the price for CR's, rahter then using a VWAP model which has no weighting for the value thats just been added to the company.

Its a bit like selling a $400,000 house after a $200,000 make over when an agent would value it at close to $600,000 and yet only asking for $400,000. Rather then asking for $550,000 to $575,000

Any dumb ass agent could sell it for $400,000 if its just had $200,000 value added to it.

Why should we acccept this scenario with out at least expressing dissappointment.

As for the market agreing. I disagree. They are saying that despite the fact instos recieved shares at $1.60, the dealk was so good its still increased the sp dramatically. To me that says, even stronger that the CR offer was way to cheap, cauuse despite the increased selling , its still managed to put on 50c. The market is saying they think the deal added amazing value. So why couldnt AUT see it.

As soon as I and most of you saw the deal we instantly recognized the value that had been added. As soon as Euroz saw it they raised the valuation almost 50%.

So tell me why was managment of AUT so blind they couldnt envisage it was worth so much more then prior to the deal.

As i said imo they where dumb on this one. And for an otherwise brilliant managment team, it needs to know what we think as holders. So that the same mistakes are not repeated.