Firstly - congratulations to management on AUL's first gold pour. Considering where this Company was 2 years ago, it should not be under estimated the effort and sheer determination to have made this achievement.
There are many "bashers" who stated repeatedly that AUL would never produce an ounce of gold, that MS is a clapped out water logged mine picked dry by the old timers, that AUL would never get the cash together to buy out Chillee, the processing plant would never work without millions thrown at it, that AUL would never get ownership of RoD, so on and so on.
Now, when they have been bleating for ages about the Co. having no cash/where the cash is going to come from - management have now ann'ed that they are working on a CR/placement to raise up to $5.5 mill and guess what? The same bashers going on about the above never happening are now stating that there is going to be huge dilution, raising at a crap price, why didn't they wait for a better SP to raise at, etc.
The Co. needs cash - that is a given. They need to continue drilling RoD and also the reefs in MS of which one drill hole returned 1.8m at 46gT (that is outstanding - but over how big an area?), establish head grades/assay results, move to a constant roster of mining/processing rather than 7 on/7 off, pay salaries, etc...all before any potential sales of gold/concentrate come through the door...
...so I applaud the current raising albeit not at a price we all would like, but as long as SH's can get a chance to participate on same terms, then hopefully this will see the last of any CR's for this Co. until decent production and sales can be established...and we would like to think an appreciation is SP accordingly.
For mine, the bigger Q is why would a guy like Frank be interested in staking his reputation on being Chairman of a $10 mill MC gold ASX minnow in the back waters of Victoria which apparently has an unprofitable mining operation?
Additionally, why would investors be stumping up a few million $$$ for a couple of picked clean mines that will apparently never produce $1 profit?
Doesn't make sense really. I assume that Frank, the BoD and these investors see far greater potential and return on their time, effort and investment than just a few pips.
So whilst the many argue the semantics of how many tonnes were processed from RoD and what Tom said and when and that Stacpoole grades were average and so on - I ask what is the bigger plan here as I feel there is one!
Cheers The K
AUL Price at posting:
0.6¢ Sentiment: Buy Disclosure: Held
