price, page-14

re: next oxr : did u know rio has a royalty from b Nah, he's an Aussie, who posts on the Kiwi site. Thinks they are going to have big problems with the complex polymetallic nature of the dirt, and also reckons the announcements are bulls*it. Questions the credentials of the geologist, who was associated with a previous failed incarnation of the Browns project. Questions the 'leech' thing they've come up with, because its only a theory. Questions how the hell they are going to get the cobalt out of the ground. Questions anything to do with the uranium side of things and wonders why its only popped up in recent weeks. Questions the ability of the broker/promoter to value the ground, as geologically they are making pie in the sky claims. Suspects that the reason for the share price rise is to raise capital: = dilution.

The big issue is the metalurgical separation. That has always been the issue at Browns, and always will be. Why do RIO have a share in Browns? Because they sold out of it and gave up - and they have the very best geological expertise in the world.

The value they've come up with for the cobalt is rubbish. Sure they have a massive resource in the ground, but it will stay in ground because its too hard to get it out and separate it. Its not as simple digging it up and flogging it off to the Asians.

Done no feasibility study, as they are financing 'in-house' (why? - because no bank in their right mind would finance): and where are they going to get the funds from? And why is the share price 'high' at the moment? Look out there is a share issue on the way to 'sophisticated investors'.

Its going to cost them at least double what they say it will to get mining going - its a massive undertaking that Rio gave up on - why? Not because metal prices were depressed, but because they couldn't work out how to dig it out of the ground and separate the metals.

Compass is in the middle of a spruiking period. Make sure you are not holding when it finishes, else you'll be looking at a pretty big paper loss.