Today should be interesting. All the $0.001 shares have been gobbled up. A good portion of the $0.002 shares have been withdrawn. The $0.001 buy side is stacked. Will a low ball buyer meet the market and buy at $0.0015? And start the rise. Or will buyers just jump to $0.002?
CLE does not have the money to develop this resource. Never, ever, not in a million years. So they need a buyer. Or a JV partner. Will the BOD hold. There is enough anti-takeover power in place. But if the BOD decide to grab the money and run, then this is a different story.
The quality of the DR pellets and the capacity of 150 Mtpa, means that the Middle East can produce a very low carbon emission steel. That puts the value of the project at $US0.25 per tonne Fe in the ground. That exceeds $1B. Even at half price puts the in ground value at $US500M. Post consolidation and rights issue puts the discounted value at $0.75 a share. That makes the current price very cheap.
CLE Price at posting:
0.1¢ Sentiment: Buy Disclosure: Held
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