I have just returned to having a look at BAU having sold my holdings in Q1 2010. I'm astounded to see the SP below 20c. Why? I don't vouch for this being correct, I'm just doing my best.
Cash approx: $43.5m Market Cap: $51.6m
Resource May 2011 15.1mt Alumina 42.1% Aug 2011 33.4mt Alumina 41.1%
Bauxite Price Feb 2009 Approx $33/t From June 2010 approx $55/t
Yankuang Agreement. Looks like it should be positive for BAU.
Problems BRL litigation threat (28 June 2010) In at least some tenements Access below 30m, but not the top 30m.
I don't understand how a miner gets access to mining rights, but not the top 30m. Is sound like giving some one half a bottle of bear, but telling him/her that he/she can only drink the bottom half.
I wonder whether there is statuary limitation to litigations threats. Does the party have a limited time to go through with the threat or is there a time limit?
Back to the question (Why is the SP below 20c).
Unless the problems are much bigger than I envisage or I'm missing something vital, I am mystified.
Obviously, more research required on my part.
BAU Price at posting:
17.0¢ Sentiment: None Disclosure: Not Held
