I agree Oly, it is responsible and if it means no further dilution which I'm assuming is the plan from his "will result in greater value to existing investors" part, then I guess that's good news.
I think I would prefer a larger up front cost for a lower ongoing cost. That to me shows confidence. In my opinion this announcement reaked of desperation. But if you're right Oly and a deal is in the back ground then I suppose you make concessions in the short term for wins in the long.
I didn't expect them to give up on the cobalt entirely though, particularly with the macro conditions of that market. I'm not surprised we're taking a hit today. Maybe they intend to sell the tailings to CLQ... by the time they get their process plant up and running we should have a nice little stock pile.
All in all, the real reason I'm here is the same as you. If this move is all part of the journey to developing Skaergaard then so be it. I wonder what the capex of the ice queen would be, I don't think it ever got to that point, did it? Sale of 30% of MM and some Owendale profits. Would it be enough? Hmmmm.
Cheers,
DMac
PGM Price at posting:
15.5¢ Sentiment: Buy Disclosure: Held
