In the old days there would have been an anticipatory run in the SP. Here nada. But the market is far more wary now.
Was there a sell off before the news?
I can't see that, maybe you can. The SP has been very ordinary due to accumulators and this has gone on for a loong time. As others have said, the instos are unlikely to bolt in a hurry. They would be taking special note of the figures coming up in the quarterly.
The argument has long been put in here that Finland was going to enable the Roseby project to be free carried if Xstrata walked. Apparently not, as AC says now that it is too big for that. He also says that the project is unlikely to be built inside of 18months. Another long wait. it's difficult not to curse the day I got on board this one, but at least I've diversified.
Hopefully there is a lot of action going on right now at AOH to fix all this uncertainty.
AOH endorsed the progress of the Duguld River MMG mine 9 km from Roseby, in an ann. 10 Dec 2012:
The infrastructure that is being developed includes rail line and power.
I wonder if Ernest Henry will accept concentrate from Roseby anyway or if that means we have to build our own concentrator? It certainly seems like Xstrata slammed the door when leaving.
I guess they are used to taking candy from a baby and don't like being made to pay a full market price.
DV
AOH Price at posting:
24.5¢ Sentiment: Hold Disclosure: Held
