Trilogy Metals and South 32, page-2

These are all just high risk reward strategies by s32. Unfortunately s32 inherited no prospective land from the demerger of BHP. So it has some great tier 2 operating assets and a couple of tier 1 unloved ones by BHP. However no real future deposits besides the base metals project it paid for via a takeover (good deposit too).

i like the strategy of spraying money around lots and lots of micro caps. However its a long term strategy that hopes that 1 in many land something. If it doesn’t pay off in the future, s32 will weigh up the cost of this strategy against straight hostile takeovers. We will see in the future. By no means is a s32 JV a sign of confidence to invest in any of these penny dread companies. They are merely planting seeds across the world, as they should be.

I’d like to personally see the SA coal proceeds to be used for a mid cap takeover or JV. Similar to what BHP has done recently by putting $50m into a prospective copper company listed on the LSE.

a lot of potential for s32 in the future to be much much higher in the future and with a lot of ‘off balance sheet’ value through tenements. I’d argue bhp and Rio have $10s of billions of value not recognised as such through their tenement holdings. S32 doesn’t have this.

Still hoping for S32 to get a reasonable tier 1 copper deposit. It would be a nice ‘FU’ to BHP. I own both anyway, just be some irony of the unwanted little brother.