I don't think we'll see 30c by next week, but i hope i'm wrong. This transaction does however highlight how cheap this stock is at the moment. The market just won't value commodity stocks properly, but i see a very strong asymmetric payoff here. Downside is limited (unless commodity price absolutely tanks) but upside is 50-100%. Exxaro clearly likes this asset and i imagine they'll consolidate it sooner rather than later. The CEO's comments on the call yesterday were a bit cryptic, but i understood them to mean that they think a takeout is inevitable.
Add to My Watchlist
What is My Watchlist?
