In a nutshell, if the tungsten price was healthy, the $A stayed low and capital was easy to raise, then Watershed should be a goer and the SP would be at least 15c. Well, that is all very dramatic news, isn't it. Of course they don't say what the SP could be in, say, a year's time if the tungsten price is no better, the $A appreciates (as it has lately), capital markets remain tight and, for good measure, Macquarie demand their $3M back in June instead of being fobbed off again with VML shares or options. Let's just say that the latter scenario doesn't bare thinking about. As I said before, management should probably be thinking in terms of giving someone 75% of the project in exchange for them financing development. On that basis perhaps the Japanese may even decide to come to the party after all.
What thoughts has this report inspired in others?
VML Price at posting:
1.2¢ Sentiment: None Disclosure: Not Held
