Industrial & precious metal prices are correcting now due to China/EM growth concerns, trade war tensions and strengthening USD
Its an awful time to raise money, particularly for a project like Oposura. Valuations the PEA will rely on are at multi-year lows. Op's economics were always marginal imo (at best) and current macros weaken the case further
Azure has a poor history when it comes to CRs. Any potential investor brave enough to invest in a project like Oposura in the current climate would need to come to terms with its long history of non-accretive CRs and falling share price.
BEST CASE scenario imo is the company attracts interest from a risk-tolerant investor by offering a heavily discounted CR (14 or 15c?) with a large swag of oppies thrown in to sweeten the deal.
Worst case scenario is the company fails to attract sufficient equity on any terms. What then? Sell Alacran to Teck? Would Teck be interested prior to finalising its exploration program?
IMO this company has never been in a more perilous and disadvantageous position. I acknowledge this is no great insight, and is reflected in the current share price (now at a 15y all-time-low)
AZS Price at posting:
20.0¢ Sentiment: Sell Disclosure: Not Held
