If we wait for drilling then that should have a positive affect on both AGU and PDY. So, cant see why that is a reason to wait.
The issue here is that the combined entity should be worth more than the sum of the 2 individuals. Will save some $$'s at board level as one issue but more importantly, it brings the whole resource into one company and that will make it much more attractive to the Chinese groups. Also, when they clean up the register and the shares on issue via a consolidation, the company will be more attractive to insto's as the shares on issue will be reduced and the whole iron ore asset will be 'under the one roof'. The insto's will be interested in PDY once those things are rectified beacuse it will then start to fall within their guidelines for investment.
Do we want the SP up - of course we do, dont you !! I believe that bringing it all together into one entity, plus a share consolidation will be the foundation for that.
Then we have drilling results to come in for DSO and magnetite + potential of Yilgarn + potential for Chinese deals + potential for insto's to start looking.
I believe the company will be in a much better place to get deals done if they can get this sorted out pre Xmas !!
AGU Price at posting:
2.5¢ Sentiment: Buy Disclosure: Held
