flinders clear path to success and rerating

The proposed alliance between Flinders Mines and Brockman spells the end of much uncertainty about the Future of Flinders. The market does not like uncertainty and coupled with a challenging market the share price has inadvertently come back to test GFC lows.

Now lets look at things objectively - MMK were prepared to throw $550m at the time of the take over - they obviously saw value probably at 5-10 times its investment otherwise they would not have bothered $5.5B. Since then we all know what has happened to the share price largely driven by the uncertainty of the project and poor company perception post the failed takeover.

The Tide is turning.. And its turning at the rate of knots. In its recent company update FMS explicitly stated that they were pursuing various opportunities for Funding, Offtakes (Guaranteeing the future contract sale of ore), and JV/ Merger agreements.. Speaking to various informed senior brokers there are a list of groups wishing to Finance/ Merge with Flinders to push the project to production stage. However today's announcement is a sweetener as Brockman provides all required factors to get this project off the ground to production.

Brockman - Being backed by the Chinese have a copious amounts of cash to get this project off the ground. They CEO most importantly stated that CRITICAL MASS will of both combined resources will give the project exponentially incremental commercial Value. Much of this relates to the economies of scale this will produce.
The Aurizon deal struck with Brockman for provision of infrastructure and service Now also essentially applies to Flinders.

This is a real Win Win situation for Flinders and its team, and i'm certain that current levels of valuation will be rerated accordingly in line with the new proposed structure.

10c will be the next stop in my opinion. 10c sounds very cheap even still. Good luck to all.