With a new resource upgrade this morning, I believe this a case to try and stop the bleeding of the sp. The management probably wanted to play this card further down the track. At the close of yesterday the implied value of the reverse takover is now $3.80 divided by 0.575 = $6.61. It's getting closer to the cash offer of $6.38 offered by Sino. Things certainly didn't help MMX by the sale of the 7.1% block of MIS by Malaysian holder Vital Rays. If Sino get their bid over the line by next Friday, I believe they will want just a seat on the existing board of MIS and not full control. They are a metals trader and just want to focus on the supply of iron ore to their mills in China and not any mining or infra. As momentum is gathering Sino's way at the moment let's hope they fall short.
MMX Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
