Ann: Trading Halt, page-453

"Not one bear answered any of my questions from an earlier post after I conceded you guys to date are correct, tells me your not up for debate but rather posting for whatever personal agenda you guys hold"

@pc3 - I think you will find that a lot of posters were suspended and therefore not able to respond to your questions. I was suspended for a week and then for another week after being back for around an hour.

Here's a belated response to your questions:

1. Firstly I cant work out your hatred for BB, yes he has made mistakes the London presentation and the smart reply to the ASX I was not wrapped about and I recall I said as much. Wont comment on Bergen as I confess I had never heard of them prior to AUZ signing on....and I suspect some of the bears who hang from the coat tails of the experienced contrarians had not either From before our rise to .15c what would have you guys done differently ? Don't shy away from the question, i'd like to know. Who here on the forum wouldn't have tried to woo SK

Does anyone ‘hate’ BB? He has made mistakes, leading to ASX suspensions and has probably been too sanguine about the SKI deal. Bergen was a very bad move and the new CR is no better. But ‘hate’ is a strong word!

2. If your green (ground floor buyer)I can understand you may wish to sell out on Wednesday, but gee it will be stampede for the doors I suspect for a couple of days. For those in the red what do you guys (in your opinion) think one should do ? I'm certainly not going to get 3.7c on Wednesday morning......

No-one can give this sort of advice. Depends on risk appetite and perceived alternate opportunities. All comes down to your view on financing (which depends on the optimised BFS. If you believe they can get the funds for construction, you would probably want to hang on. If you doubt this, you will probably need to be looking for an exit.

3. Given SK have chosen NOT to exercise the options, they needed funds. Should they have kept Bergen...seeing as they had already arranged it, how would you guys have played it ? they obviously need funds to comply with audits/solvency so what should they have done ?

Without the SKI injection of funds – which was never going to happen – it would have been better to do a SI/retail cap raise at around 5-5.5c rather than the Bergen convertible notes.

4. Riddle me this why ONLY $5m, $75m shy of the SK take up. for this credit raise ? doesn't seem enough in my view.

Yes, it’s small. They must believe it is enough to get them through to finance and some sort of commitment from SKI. Otherwise it does not make sense.

5. Who should be in BB's role ?
No views on this

6. Are we privy to all the nuances, knowledge and proceedings the board and senior management at AUZ are ?.....

Of course not – not that their greater knowledge is necessarily going to be helpful!

7. Who thinks the ore at Sconi is NEVER coming out of the ground

I have no idea – until the optimised BFS is released and how the potential financiers respond to it. Irrespective of the EV revolution, materials are not going to be dug up if the grades/quantities do not make it profitable. Just like oil and gas – plenty of wells have not gone anywhere for the same reason.

It’s a tough gig I am sure, and who here on HC feels they could have done a better job?

No-one is in a position to answer that.

It is a long tough road, but are their not some positives ?

Yes – being in the right place at the right time, having a jorc resource, having an off-take term sheet (albeit not yet fully binding due to conditions precedent) and being close to labour and infrastructure. But none of that means anything if they can’t get the resource out of the ground economically – something that is still speculative!

They have proven that that they can produce the required battery grade metals to meet "a customers" specifications.

You may like to consider why have follow-up exports have not been announced, as indicated mid-2018 at the time of the first shipment to SKI

SK now lose (at this stage) the 19.99% and board seat as well as what ever the discount on the ore amounted to over the life of the off take, none of us on HC are complicit to what that agreement entailed. Was the discount to much ? could it have been a sticking point with financiers.

It lapsed simply because it was not economically compelling for SKI and/or too risky prior to confirmation of funding and decision to mine. You were led down the garden path on this one by all the bulls – many of whom should have known better or were just being baldly manipulative.

NAIF decision possibly September or was it November...I forget, there is a chance that will come through ?

A conditional term sheet could be announced any time but satisfaction of conditions precedent is likely to take several more months – at least to Sep-Oct. It may or may not be substantial. There is no way of knowing.

The ev revolution is going to happen in my view, we are not quite their because the infrastructure is yet to be built

Yes, but there is plenty of competition in the battery materials space and no free ride for companies such as AUZ

So my thoughts are no doubt we are in for a painful couple of weeks, but if your red and do not need any "lunch money" next week my thoughts are your better of holding, what do you guys think ?

As I said before, it depends on your view of whether or not the mine gets up. This is far from a given, despite what the self-appointed and self-marketed ‘industry experts’ tell you

I think by the end of 2019 there is a strong chance I and other will be green again IF boxes are ticked. NAIF and financing. It intrigues me why it is only 5m AUZ are putting their hand out for, SK walked with their $80m still in their wallet, they had to get some funds, that is a simple fact.... No doubt for those in the red who are not bailing next week (I am not) it will be a long slow burn now, agree with that, but I still think LT that Sconi will be mined, the metrics have improved since the highs at .15c,

We don’t know that yet – depends on the optimised BFS.