Explanation of recent huge selling, page-3

Another big call about AML management @speccy, after reading your recent post Investment Guide I thought that the management had not handled some things well at all, - well according to what you said about them. I haven't found time to research the matter (have been travelling and not been able to find the time).

With regard to Regal and the recent "huge selling", I am not sure if I understand what you mean by this, I have looked at recent daily volumes (and I get it that AML is a low liquidity stock) and volumes have not been high, probably more on the low side just lately.

So according to recent Ann re $30m IP 15/12/17, AML had 473m shares out there prior to IP which was for 107m shares @28 (which was a 6.7% discount to market, I thought that was very reasonable actually). So after IP AML had 580m shares on register.

10m shares being sold by Regal doesn't really amount to a huge sell down in my opinion, it would take 2 to 3 weeks of trading; so is it really huge??

I get that you would rather see that the instos and sophisticates who take up CR's and IP's were long term holders. I would definitely prefer that too. But I don't think that it is tragic, since mid Jan the materials sector of ASX has taken a belting (not just cobalt and lithium), it has been across the board, not many companies have escaped this sell down; but then we also got the DOW correction in early Feb where we had the recent low. AML went from 28c (it had been holding well prior) to 22c on 6 Feb. But it has been slowly recovering.

The thing is small cap companies have to raise cash from time to time or they are out of business, so they have to take the money that is offered, we all know the story, we've seen this before. As a retail holder I don't like it, but I know that it happens - all too regularly. But would I behave any differently if I were the one with the large amounts of capital??

When AML did the CR @14c were they selling to Regal ?? Have you spoken with management about this, I recently spoke with Steve Lonergan about the SPP (early Jan) and I might phone him back about this subject after I have re-read your AML Guide so that I am across all the matters you have raised here now and previously.

In the meantime I am looking forward to this years drilling program, I would like to see a lot more tonnages added to the resource which was released late last year, AML already have a significant Cu, Co resource, but by the end of this year it could be substantially increased, which would be great for the economics of this Walford Creek project.