Ann: Sconi Off-take Update, page-27

This is the only not so good news from AUZ in last 15 months and the price has already taken a beating from 11/13 cent levels to 4 cents .

Good that it’s all clear now and the uncertainty has ended and now the only thing to look forward to is positive news and ticking off key goals . 

Also, we all don’t know what the commercial in-confidence discount was and it might be safe to assume that we save $64mn ( as 20% of 80mn would have belonged to SKI anyhow) in NPV of the discount we would have done . Also, if Flamington and other projects become big  in future then we saved on sharing 20% of that . 

It it will be interesting to see the next chain of events on 
how the legal agreements and full  Off take agreement will look like , what & when will be NAÏF support coming , how the revised BFS numbers will stack up  and when will we have some sort of funding announcements & how they manage the cash flow situation and ordering of lead items . It puts us in no obligation  position to SKI now when it comes to finalising Legal Formal Contract given that SKi hasn’t put down any money yet and there is no skin in the game ( which is a good news and a bad news).

It’s like we have been dating SKI for last 12 months and there have been a formal media release  by both parties that we will announce the wedding date by 20th feb ( & rumours have been that our relationship has ended or we are certainly getting married or we are pregnant)  & today it has all been clarified that no wedding bells yet & their is no   anytime soon but relationship is still on & it’s rock solid . 

Let’s see how the market responds to it and when and what do we get as the next surprise news on any of the above critical topics. 

Cheers
Trader Guy