Hi Rastus. I agree SKI wants to help AUZ to production.
The question open is, how much are they willing to help.
Be real. I can be more objective about AUZ because I have no position in it.My thoughts are not complicated. No conspiracy theory is needed. SKI wants secure cobalt as cheaply as possible. AUZ wants to supply them and build a mine but they have no money. One only needs to look at the motivations and relative positions of the players and assume they will be motivated by their self-interest.
No one knows at what price a controlling interest in AUZ could be obtained, I apologize for asserting it was $280 million, but the fact is the price cannot be terribly high when SKI already has an option for 19.9% at 12 cents. We do not know what price holders would approve, no one knows. Your guess is as good as mine. But after getting 19.9% at 12 cents, they only need another 31% to take control.
What is to stop a company the size of SKI from offering18 cents, or 20 cents, or 25 cents ?
Why wouldn't they ?
If SKI owned AUZ, they will get the margin from the $5 billion in takeoff they are committing to. They would be paying it to themselves. That is where the big money is.
If you can save a couple of billion for a few hundred million, why wouldn't you do it ?
SKI has no investment to speak of yet in AUZ. There is no SKI equity yet and no money for the mine. There likely will be at some point. I believe there will be. But how beneficial this will be to AUZ holders remains to be seen.
SKI has lots of options, but they are options and futures. There is no big-time money committed to the mine yet.
Do you think SKI is relying solely on AUZ for cobalt ? I assure you, they are not.
Obviously they want the cobalt, and they want AUZ to produce it. They are already in the door at 12 cents; one needs to consider their point of view as well.
AUZ Price at posting:
10.5¢ Sentiment: Buy Disclosure: Not Held
(20min delay)