Ann: Trading Halt, page-337

Ahh back from a weeks unexpected holiday and certainly a temultuous week with most holders feeling a little bruised and battered I’m sure. 

Imo SK not taking up the option on this round was close to an odds on bet. After all with a years worth of hindsight we now see rather clearly it was based on an already ‘antiquated’ data set i.e.,

1 - time frame originally it was based on a June 2018 BFS release then finance and option uptake by Dec 31st now pushed way out. 
2 - much smaller JORCed resource which since we’ve seen a resource requirement increase by SKI. Expansion drilling has seen significant changes to the original but it’s not legally set so we (and they) await BFS2.
3 - economic conditions, early 2018 saw runaway cobalt prices with nickel set to possibly follow so we had groups like SK in serious ‘hedge’ mode. I think they, like everyone else is quite taken aback by just how quickly supply has matched demand particularly in cobalt.
4 - Finance still some distance from finalising

I’m also guessing they’re more educated now on the nickel and cobalt production space and have shifted expectations accordingly. So when viewed from this angle I think it’s fair to ask what company would throw
80 million at a deal still so seriously in a state of flux? If it all went south that’s a big risk based on many unknowns.

I believe that when we see solidification of the above issues we’ll see SKI wade back into the possibility of capital injection in one form or another under a new set of renegotiated terms and is one of the reasons I remain optimistic about AUZ. 

Seeing Mr Bell’s head in a selfie on twitter during a time of strong leadership required is not one of them.