When news breaks of this latest development, do you see the market thinking "NKP have lost 50% of N" or "NKP have gained 50% of N"?
I cant see why people are so positive about a conference that wasnt even considered material enough for an ASX announcement.
It doesnt clear up ARM.
It will be good to know exactly how much of N we are left with, and it could be a real bonus if some of Genorahs shares get cancelled.
This is definately a very small step in the NKP story. And The March announcement anticipated this outcome. IMO probably factored in to sp.
Its not a negative, but any positive is either minimal(ie 50% of a small asset 7% of total resource) or already factored in.
I agree with Balilow that it will be good that media all start report the same story of 'unity'. It will add confidence. Better than NKP saying all is fine then BarrySesrgent disputing everything we say.
Positive media coverage will help drive the sp, but it will take time.
We still have the situation where we need BFS and JV to really add value.
The JV seems to be complicated. Xstrata want it, but dont want to act before Anglo/ARM issue is resolved.
Anglo/Arm haven't officially launch a legal challenge because they know it cant succeed. It can only cause disruption and delays. They want to use the threat of a legal dispute/delay to discourage Xstrata.
Then slowly bring NKP to its knees via lack of funding, until NKP cave in and sign a JV with them.
The uncertainty with (lack of ) BFS and JV far outweight any positive from "N". Shareprice will remain firm this week. Maybe slowly rising until we get the BFS(soon?).
NKP Price at posting:
32.0¢ Sentiment: Hold Disclosure: Held
