Like a lot of long termers I stay away from the threads these days; too many Johnny-come-latelys pontificating about nothing. I try to wait until I have something wise and pithy to say, then I give up and post anyway. In my own mind I have come to a belief about UMC management which explains their recent actions and lack of communication. Most of the serious posters accept that Railway is a one off never to be repeated find. I now believe that UMC management have never shared this view. I now believe that they fully believed that Railway was the first in a series of substantial finds; that they were going to be not just a serious junior but a contender, another Fortescue.
Problem is, one after another the other dominoes have fallen over leaving Railway isolated and with problems getting the ore to market. At the death they may be proven right. If Mt Robertson proves up as a substantial second find it may justify the Capex of a go-it-alone transport solution. If Mt Robertson has fallen over already it may explain the reasoning behind Siberia's post.
It may be that the delusions of grandeur have been shattered and management have become dispirited and now believe the best way to unlock value is to sell the company and hope for a bidding war between BHP and RIO for railway.
Pagarsi
UMC Price at posting:
87.0¢ Sentiment: Hold Disclosure: Held
