That is why one can buy at 14c, 15c right now. If they had had not lost 2 years in transition, people would have had to pay at least $1 for a share right now.
The main point here is the risk/reward ratio. I could lose 20% in exchange for potential reward of 700%- 1000% depending on how this new management team performs in the months ahead.
Another potential here is a predator could sweep in to take over CAP for its resource. Of course I don't want to see this scenario happens because a take over offer of $200mil-$250mil would not adequately value the company.
Mitsui & Co withdrawal was not due to broken trust. In fact they was more patient than I would have expected. They had renewed the agreement twice and I don't think anyone would expect they keep renewing the agreement again. They walked away to let CAP and PM sorted out the issue and put pressure on CAP to solve the issue as quickly as possible. They made it clear that they would come back once it is resolved and the issue between PM and CAP has now been resolved.
In terms of getting the 1st key off-take agreement inked away, I believe Bryan can easily do so with certain percentage discount. 10%, 15%, 20% discount. Every business is after profit and as long as you give them a good deal they will take it. That is business. Once you have the 1st signed up, many will follow.
The quality of this project could not be ignored by these big customers. HAWSONS project has EVERYTHING in its favour in terms of infrastructure. Power, water, roads, rails, ports, workforce availability and skills (Broken Hill)..in the best mining jurisdiction in the world. These factors are never lost in the eyes of investors and partners. They are very important to a major project.
CAP Price at posting:
14.0¢ Sentiment: Buy Disclosure: Held
