SBL - "SLR could easily buy the assets off the liquidators for 1/5th of the price if they wait a bit longer"
Not that I would ever like it to reach that stage but if administrators had been called in I reckon they would have at least been able to do as good a job at marketing the Phillips River assets than the current management.
Also, if SLR had not come up with their proposal I believe there was an earlier recapitalisation placement option available to management. Although it would have caused very significant dilution it would probably on a value for shareholder basis be not that much poorer than the current SLR offer (given the 25% drop in the SLR share price). Accepting the placement would also have avoided all the costly business of dealing with this SLR deal.
PRH was therefore not dead in the water and heading for administration - there was another option to keep us going that never got a chance.
Given the extremely difficult current time for Juniors to gain project funding I think a wise decision 6 months or more ago would have been to continue in definition/exploration mode (primarily at Kundip) until funding conditions improved. Beefing up the resource/reserve a bit more would have also added value an improved chances.
Easy to be critical of management in retrospect and we have what we have but I still have a hunch that something is still brewing behind the scenes.
PRH Price at posting:
1.5¢ Sentiment: Hold Disclosure: Held
