major raid on share register, page-13

Hi smacka64

Not sure what is going on at Ernst Henry. Roseby was touted as being the feed - then about 25 months ago - it was no longer mentioned or noted in any Annual Reports etc. That's when things got ugly. I know Xstrata need feed for their mill - what they going to do - run it at 30%? Doubt it - but Xstrata have always noted (aliong with former CUO) that Roseby was not enough. Interesting, since Roseby is a motherload. Anyhow, if that is the case, then I can see the attraction of acquiring former CUO assets (nice grades) along with the good grades of Roseby - and there you have it. Xstrata would have a stash of feed for the next couple of years - ensuring good payback on the capital they sunk into their plant years back. Sure beats finding more resources and wasting further capital. Why not take the sure bet? Furthermore, I doubt they will get much of of CDU - Wayne and his team have expressed their dislike of Xstrata in the past. My money is on the bet that this is Xstrata buying up. Xstrata have some good prospects with the SEEP drilling too.

Opinions only