’Why?’I don’t think interested parties are looking at it from a...

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Chartwizard

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18/05/24

07:24

Post #: 73889383
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Originally posted by zebster: ↑

Why?
Because LJ, BS, and Windarra have a collective estimated (published) rehab. cost >$62m, along with ongoing C&M costs for LJ & BS.
So, unless a potential suitor has deep pockets (to fund ongoing C&M) and is willing to asset-bank the projects for many years -- esp. BS & W (re- Ni), then it's not terribly difficult to see why anyone might be hesitant in putting themselves on the hook for the lot -- or any of it, for that matter.
It really would be nice to know what scared MIN off, but I doubt it will ever see the light of day.

PS. I had a quiet chuckle at the mention of POS having, "...received interest in the project from a number of parties" in today's announcement. it's the kind of non-descript statement that, although most likely technically not untrue, is unlikely to amount to anything except plant the seed of continued hope without really saying much at all.
It reminded me of something that BS mentioned to me, directly, during a sit-down meeting I had with the full cast of management in early Q4 last year. It was something along the lines that over the preceding couple of years, or so, POS had been approached by no less than 100 interested parties wrt the BS project (yep, he used that exact number!). No context around whether it related to purchase of the project, potential JVs, offtakes, or whatever else; just a large number thrown out there -- presumably promotional marketing for my benefit. And look where BS is at right now ~7 months later.
So, when I read "... a number of parties..." this morning I had a good liitle chuckle.

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’Why?’

I don’t think interested parties are looking at it from a C&M perspective, they are probably looking at is from a perspective that nickel is about to run and POS is an opportunistic asset. I doubt anyone smart enough to make an asset purchase would be interest in inheriting a C&M liability as you allude to. The market is about finding future value and making forward predictions, right or wrongly.
POS imo is at an inflection as I posted quite some time ago in the chart thread, you can look for yourself where I highlighted green and verify there.

Additionally nickel price is already starting to run, which I honestly don’t like all the much because I would have liked to have seen the nail in the coffin of the BHP operation prior to running up. Therein “right or wrongly” risk. .

Last edited by Chartwizard: 18/05/24

POS Price at posting: 0.6¢ Sentiment: None Disclosure: Not Held
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