I agree Joelstar. Gold Fields have too much invested here to even use "leaving Australia" as a negotiating bluff.
Have you heard any more on this story? I was expecting an ASX announcement today with Gold Road denying any substance to the article.
No ASX release came. This suggests me that the Australian article is probably spot on.
The tangle between Gold Fields, Gold Road and De Grey Mining looks very unstable and really needs to be sorted out through corporate activity and Gold Fields alone have the muscle and the incentive to sort this situation. They would walk over hot coals to get 100% of Gruyere and 20% of De Gray. I have an interest in both De Gray and Gold Road, but would be quite happy for Gold Field's wish to be granted. Corporate activity generates a short term boost for shareholders.
My guess is that Gold Fields have sent Gold Road a letter floating the suggestion that they would like to be relieved of the agreement not to seek 100% of Gruyere. This first shot by Gold Fields would be a polite warning of what the future might bring and Gold Road has understood and rushed to Macquarie for advice. And so the Australian article might be more than a piece of mischief.
GOR Price at posting:
$1.67 Sentiment: Buy Disclosure: Held
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