for the record

Dear All

I attach my post of 7 July which although arguably far fetched at the time has proven correct within 2 months rather than 6.

The only outstanding issue is the matter of the takeover. Soros has weighed in heavily so he obviously expects something. Glencore is logical for a minority buy out (read us).

From a whole of entity perspective, BHP is clearly the most appropriate to synergise the combined operation.

Given the recent improvements, I now believe that the take out price would now be in the low $5's. Still very good buying at that price for a predator.

Regards Eos

Attachment

"I do expect volatility in the stock. We have the competing factors of a strong nickel price which could peak at US$28,000 a tonne, but against this we have the issues surrounding the acid plant.

My view is that the company is going to have a spectacular second half result overall (production and profit) with a solid first half result (good profit but indifferent production result).

Nobody should be surprised if the stock hits both $2.30 on the downside and $3.60 on the upside in the next 6 months.

While there will be trading opportunities in the near term, my strategy is defined by the belief that the second half result will trigger a take over of the company in the low four dollar range sometime next year (hence the strong institutional and hedge fund interest (Soros et al))."