If Patersons are just "ringing around" to get some cash parked and the placement is not tied to either off-take or infrastructure this will not bode well for the SP in the short-term. WR will need to explain "why now" when he has spruked the value of the "landmark 1.1 billion tonnes" and every time I open a BRM report I'm greeted with ludicrous EV/t numbers like 40c. A massive dilution at $2.60 in my view only confirms that the detritals at this stage are far from certain and we are moving forward on DSO alone. If the detritals are real, then a 50% dilution at 40c/t, in the absence of a deal, is an act of financial and strategic ineptness.
If it is tied to infrastructure or off-take that is a different matter.. however, it would appear, at least at this stage, the investors are not Chinese, FMG, BHP or similar, but rather large funds parking super and retirement funds .. hardly going to drive us forward. I'm sincerely hoping I'm wrong on this... trust me!
BRM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
