Oposura Capex mystery solved, page-40

As others have said, exploration is a numbers game. The chances are any particular tenement being explored will ultimately fail to develop into a mine.

I’m not saying Oposura won’t, simply making the observation that such outcomes are the exception rather than the rule.

Azure has spent many years and many tens of millions scratching around the sands of Mexico with not a cent of revenue to show for it.

This is not a criticism of Azure, simply a reflection of the gane we’re in. Alacran was as close as the company has come to hitting jackpot.

I’d actually have preferred the company entered hibernation mode when Teck triggered the earn-in. Flog off the various scattered tenements for whatever they can get. JV or sell Promontorio too.

The company had a huge cash hoard at the time. I’d have preferred it squirrel this away during hibernation to preserve intrinsic value and catalyse the next chapter when teck makes intentions known

The consolidation could still have occurred, but there’d be zero need for a raise. To the contrary, if the share price fell due to operational inactivity the company could fund a share buy back to further tighten the register

I would have preferred this, but was it feasible? A company has a bias toward activity. Azure has an ingrained bias to raise, spend and explore. Without a deliberate change in direction it will follow this instinctive pattern

Perhaps it would have been better to close down the company’s Mexico presence but continue to pay Tony his full wage for doing nothing?

Id suggest this approach may actually have ended up being more accretive for current shareholders than our current course of action with the associated dilutions and uncertainties