"Nothing has technically been lost as the 70% -> 36- 40% interest is offset by the $7-9M in cash raised."
The same large holders here will also become the largest holders in the new entity EQN. So they weren't prepared to put their money into PF1 to fund Hammersley, but when they were offered (loose term, maybe orchestrated is better) a bigger slice of the pie for themselves, the money was available. So they don't loose out, they hardly ever do... but someone does, and your smart enough to know who...
"Establishing EQN creates options in terms of ultimate future divestment, eg staged sell down, bookbuild, or takeover. Staged sell down on an as needs basis provides a potential cash generation alternative to CR for PF1."
Most of the options you list are currently available to them now in terms of divestment. Truth is, in what has been one of the greatest bull runs of iron ore seen in many years (ever?) there were no takers/buyers/investors etc... Assume most if not all of the holdings will be escrowed for 12-24 months? That's a long time for PF1 to realise some value in the holding.
"Market timing to launch EQN seems solid, caught the latter end of the Fe price spike, with the benefit of hindsight, quite prudent."
You really think now is a good time to be launching a standalone iron ore entity with a low grade resource....really?
You come across a quite intelligent, and convey your points well, even with very little to work with. Your doing well to try and find positives where, imo, there clearly aren't any (unless you are one of the lucky ones receiving consideration for the EQN IPO). An old mate of mine from the country used to say - "you cant make strawberry jam out of pig shit" He's right of course, but I guess you cant stop people from trying - over to you
PF1 Price at posting:
36.0¢ Sentiment: None Disclosure: Not Held
(20min delay)
