I am speculating that NKP will give ( or has already given) Xstrata "x" number of days/weeks in which to decide Deal or No Deal re a JV.
NKP do not want to wait forever for Xstrata to make a decision especially since it has been participating in the BFS for nearly one year.
If Xstrata says that it is not interested then NKP can seek an alternate partner or go it alone and enjoy up to 1m oz of PGM per annum.
If Xstrata requires more time (say several months)to decide then NKP will seek financial compensation while it waits for a decision.
If Xstrata requires a Tubatse BFS before deciding on a JV then again NKP should demand financial compensation for the delay. Xstrata did agree on only the Garatau BFS late last year beore deciding on a JV.
Xstrata will need to decide very soon whether they make another takeover bid for Lonmin or go JV with NKP. Highly unlikely that the Sth African Government will allow Xstrata to takeover Lonmin and then go JV with NKP.Too much concentration of platinum power.
We can only speculate re the above. No one including myself has facts to back up views.
NKP Price at posting:
56.0¢ Sentiment: Buy Disclosure: Held
