You make some good point TFG, I think by and large you are correct but just a couple of points to consider that I think make a deal worth quite a lot (maybe not 1Bill though)
"HAV has drilled out Maldorky and let it sit for years."I think you'll find HAV have been slowly working on this and I believe, off the top of my head, they they have recently received mining lease approval (save native title). Was in an announcement somewhere. That's 60mill tonnes of 65%Fe JORC and with mining lease approval.
"HAV was strategic in recently acquiring the whole of the Grants area but until SIMEC came along did not appear to have any focus on developing this as part of the Copper/gold plan." SIMEC: Not a bad strategic partner who is funding development at zero dilution, and paying for exclusivity. A motivated partner.
"it would appear that Grants is currently little more than an exploration target " I think it's worth differentiating Grants from GIB. Grants is already JORC compliant 100million tonnes (62-65%Fe). Add Maldorky to that and you have 160mill tonnes of >62% Fe. Alone that would be 16 year mine life at 10tpa ($21bill at todays spot price, 1% ISV $212mil). Yes the rest of GIB is an exploration target but with Grants and Maldorky already further developed it gives great confidence that GIB has legs. Also they now have drill hole results from GIB including Diamond.
"held by a company with no resources to develop it further controlled by management with a poor track record of delivering what they say they will deliver." No argument from me on this one!
"I make these comments because there are some very big numbers being thrown around here for the value of Grants."
It's the big question isn't it. What's it worth? What's it worth to SIMEC?
What do you think it's worth? Outright sale of Maldorky, Grants and the rest of GIB in it's current state of development?
To me, I don't mind Peterbax's $330mil. But that's based more off how much money I would make rather than what I think its worth. Cheers Justhavinago
HAV Price at posting:
15.5¢ Sentiment: Buy Disclosure: Held
(20min delay)