Now that RIO has lost the Simandou ownership, they effectively have more resource, financial and business justification, to concentrate on their next door neighbor to create synergies like the synergies in the plibara jv.
Lets hope that their dream of a plain jv dream with EXT as a cheap way of getting exposure to RS is smashed and realise that only way is to put BIG money on the table. They know that they will have a head start over their competitors when calculation the project economics. However they will sooner or later realise that the Chineses/Japaneses/Koreans are not so much interested in the short term savings but security of supply on a long term basis. We have plenty of business agenda for ownership but ultimately it is the size and grade of RS that is the main attraction for this auction process.
As another poster pointed out, even if no sale did go through, all is not lost because LT holders will be rewarded when and not if the mine is built. Who knows luck mat have it that this will coincide with the rise in the U prices. Need a bit of luck with forecasting. :)
EXT Price at posting:
$7.30 Sentiment: LT Buy Disclosure: Held
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