Problem we have is resource analysts are tuppence a dozen, and the question that needs to be answered, will likely be answered post merger, 18 months to 2 years down the track under Ivan, who will take over the reins from Mick Davis.
To think that Australian brownfield, or greenfield mining operations won't be affected by the downturn in commodity prices and the current world economic conditions, is, in my opinion, a big call.
What we have to remember also is that each analysts has their own agenda's, like us investors.
A resource analyst says the merger of commodity trading house Glencore with global mining company Xstrata could put the control of its Australian operations at risk.
Matthew Trivett, of Patersons Securities, says the new company, valued at around $70 billion, would become one of the largest and most powerful in the mining industry.
Xstrata backed the merger on Monday, and the deal is now waiting for approval from 75 per cent of shareholders.
Mr Trivett says the new company would review all of its Australian operations, which means some could be held back.
"The real risk for Xstrata shareholders is that Xstrata are widely held as some of the best mining operators globally and it's the way they can treat each country and each operation by its own particulars, so they're not overly controlled," he said.
"It would be a shame if that changed for Xstrata operations."
I just hope, and feel confident that Xstrata will see the logic and make a full and fair offer for both Finland and Roseby.
AOH Price at posting:
26.5¢ Sentiment: None Disclosure: Held
