buyers have left the house, page-14

Panda, I've had a look through your posts to see where you're coming from. I read the most recent ANN differently to you. It says STB will put in a submission for the company and STB to have a 50/50 profit share. Profits will come in @ 2016 if not before (I am sure this management could get things going earlier). Prior to this ANN, STB were to make a submission for the govt to have a 30% ownership, but things have changed. The govt will still get 10% statutory ownership.

Just on another note, I was checking out IGO last night, who happen to be our JV partner on Duketon. As with all Aussie mining companies, IGO pay taxes and royalties to the govt- not sure the exact amount in %, but STB paying 38% tax and 3.5% royalties is not really an issue, I've come to think, because the market knew that before this ANN, and STB was then @ 89c. So, what seems to be irking STB is that the govt won't be buying out a part of STB, and therefore STB won't have the finance. However, given STB had a then market cap of $100m, it is hard to think that the Eritrean govt would have aid much more than $30m anyway as 1/3- could be wrong there. So, as it stands, STB gets to keep all the assets, but has to find capex. This is like most companies- where do they get the capex? There are loads of companies in this situation on the ASX. Most companies have to self-finance, somehow.

Of course, the big concern on the market would have to be the unknown here- not merely re finance of the project, but on what else may come out from the Eritrean government. But aside from that unknown, I can't see how things for STB differ from many other companies.

I was looking up some ANN's from STB last night: they were only Duketon before the Eritrean potash licence. They were doing ok then- quite acquisitive- deal-makers, really. And then when the Eritrean situation came along, they just had no focus on Duketon at all. I'd say those assets were pretty neglected because the company got Potash in its eyes ($$$). Now that things have dome back to earth, it's good to see that Duketon will get a new focus. Of course, if one is the TAKEOVER potential type of person, then one might think some suitor wanted the potash assets, but not the Duketon assets (or vice versa), so they are splitting them before a TAKEOVER comes along! :)