NKP (ASX) Ann: Corporate Update

Originally posted by burntgamber ↑

Hi Jack,

Your point is to be taken into consideration. I welcome all holders and non-holders comment.

I have traded both DML and ELM in the past and I would have to say that in DML's case Cathay Fortune wanted to further audit the books (not so much on a financial but on a technical perspective) but Brad Gordon (DML MD) basically told them to "F off" and that they were time wasters not wanting to do a deal. On DML case it was the MD that made the hostile move. DML was heavily geared as well and its mining operations never turned a profit. Also DML and ELM had private Chinese companies doing the takeover (you can add in Hanlong as well) where their financial muscle depended on them raising money to do the deal. Especially in ELM case (and SDL) the face-front acquirer most likely wanted to flip the asset to a bigger State Owned Enterprise to develop the CAPEX of the project.

NKP is dealing with Zijin, although listed on HK Exchange, and on paper is a private company but they have massive holding from the government. Zijin is basically a SOE. I believe that if Zijin wanted to screw NKP, they would have released the $20m and kept it as debt rather convert to equity immediately. Once the time came would have forced NKP to pay back the money including interest. NKP does not have debt which is one thing on its side.

I believe that with NKP its all dependent on your entry price. Mine is about 7.5cents for the shares and I have a truck-load of options. What I consider as an acceptable price other holders would see as daylight robbery. All comes down to what the individual define as "a good price", "a reasonable price" or "an acceptable price".

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BG,
Thanks for above post,
The Chinese are ruthless business men, and will bend whatever rules they can to get what they want. That's big business I guess and they have the money and can call the shots, I've just been on the wrong end of the deal every time they appear.
I have a .43c entry point and do not have a hope in hell of making my money back let alone a profit, and no spare cash to average down, even if I had the spare cash I would be very dubious about using it with the Chinese involved.
I would be over the moon with a 7.5c entry point ( congrats) u should make a good dollar.
I think if and when a takeover comes they may come in around the 13 to 14c mark, if that gets refused which hopefully it will, They might come back around the 15 to 18c mark. I hope I am completely wrong and I can get back as much money as possible, roll on .50c I say.
BG that was Brad Sampson at Dml, I will never forget his name after taking the boards advice not to take CFCs offer of $ 1.70 odd, anyway that's been and gone now.
Good luck with this one.
cheers JACK
ps sorry Macca, I forgot to check in before posting the above, anyway have a great day.