SWOT Analysis, page-35

Just my brain dump while on train heading home. Seems like a good list adding to every ones SWOT.


Strengths
jurisdiction - operating in a safe and stable economic environment

Projects - well proven resources at Sconi with significant potential for expansion at Sconi, Flemington and Thackaringa

Solid infrastructure at Sconi - access to water, power, electricity, transport and housing

Offtake - 100% binding offtake for Sconi from SKI destined for Mercedes

20% ownership from SKI - prevents takeover down the road

Management - solid, experienced and shareholder focussed management team

Demo plant - optimises and derisks process flow and product output

Gen5 based plant design - well proven plant design derisks processing complications (no proprietary tech)

Institutional investment - funding and stable register

Low or no dilution preference - management team stated preference to do funding without dilution

Product - proven high quality product delivered directly to battery manufacturing

Operating in a growth mega trend EV revolution - growing demand for product

Australian economy - helps to build local jobs and put Australia on the EV map

Non-core assets - gold and copper assets can be spun off

Funding - help from SKI to secure funding for construction

Workforce - local skilled workforce available



Opportunities

scandium - high tech alloys and scandium market research may yield an unexpected upside to the whole company. Automotive and aerospace and marine industry opportunities

Tenements - Flemington and Thack and Sconi show promise for significant resource increase in a growing sector



Weaknesses

management - inexperienced CEO (in relation to running a global organisation) eg market announcements, slips of the tongue, presence

Australia jurisdiction - must comply with strict requirements and environmental protection regime



Threats

environmental approval - still outstanding for Sconi and may cause issues (need to check this)

Plant build - very complex build that needs careful planning and design and construction (mitigated by have demo plant and SKI assistance)

Funding - not being able to secure on attractive terms

Slow ramp up - may experience slower than expected ramp up at Sconi

Metal market fluctuations - prices for Cobalt and Nickel may go lower worsening the economic return for the company

Battery tech change - may reduce industry reliance for Cobalt and Nickel (probably quite low at this stage)

SKI pulls out - SKI may pull out if AUZ can’t deliver on time (low chance with SKI help and Merc pressure)

Management - key personnel depart from company

Counter-party risks - something happens to SKI or they change how they want to do business with AUZ

BFS not as attractive - may affect decision to mine or invest