Stakes are being/have been built and by more than one player. And the share price is rising strongly reflecting the interest coming from all quarters.
First we have our new Singaporean investor who subscribed to the placement that, when announced sent others in a flurry to see just how many shares could be acquired on market.
We also have two unknown positions at present: the first being whether Xstrata has shown their hand, and if not, in what form they are going to enter the fray. Are they buying on market, are they only interested in making an asset play (and if so, what assets - is it only E1 or the total Qld portfolio), are they interested in making a bid for the company as a whole, or are they going to let others steal it all from them?
The second is who acquired the Lion shares. Was it Xstrata, the Singaporeans or a new entrant to the field? And what is that entity's intention? Are they building a position to be able to block a bid or argue for a better price from a position of strength.
We also have our major shareholder Ivanhoe raising a heap of cash and also being in a position that they could also offer scrip for EXS if they so chose to do so. Given the sale of the 13M shares by Lion and the recent placement that has taken place, what is IVA's long term intentions?
Barry FitzGerald's article about things heating up in Cloncurry is right on the mark, and we are about to see it unfold before our eyes.
No doubt Xstrata would not have been happy to see the announcement of our new Singaporean investor being interested in assisting with a stand alone mine development, and I am sure that Michael Anderson will have fielded a phone call from Xstrata to enquire if it is not too late to arrange a deal so that their mine still has sufficient ore to process.
It all looks very promising to see all this interest appear at once, and presumably shareholders will be the winners in coming weeks.
EXS Price at posting:
38.5¢ Sentiment: ST Buy Disclosure: Held
