Bradley - Before I respond I'm pro PEK I think if you can block...

Bradley - Before I respond I'm pro PEK I think if you can block out the noise 5 years from now this will be many multiples of current price so dont think Im here just trying to down play Im just bringing up my view and looking at it without blinkers. I did lighten off last week as I believe its been pushed a bit high and runs the risk of a CR as they are starting to run low and companies dont like running to low.

I understand officially the FEED starts April but Im certain this has already commenced and money being spent on it, they know their CAPEX is to high and they need to work on it to get it down so hence I said it will have commenced as the discussion was around cash burn and I think funds will be going towards this. With a fairly top heavy management vs MCap they need to be working on these aspects rather than twiddling their thumbs waiting for SML.

I agree the note from cannacord doesn't guarantee a CR is around the corner however it more often than not does coincide with one and these research papers are often paid for by the company if you read the fine print.

An ideal scenario and one I used to think would eventuate when looking through rose colour glasses was companies wait until after news and then raise but Ive learnt the hard way this isnt how it works. Corporate advisors will be telling them if you want to raise you need to do it before the SML so that sophs can get out, they will struggle to raise funds if this gets pushed to high and realistically larger funds wont be looking at this until later in the year at best so its smaller sophs looking for a quick buck.

For the last few months its drifted from low 40s to high 40s always sold back down, admittedly the SML negotiations have concluded but it has now gone to attorney and no one knows how long that will take so am surprised by the run up. I personally think they will raise this quarter, my guess would be 5-10 to give them breathing space as and not look desperate to Shenghe when in final negotiations. Board and management dont have much skin so you may seem them participate which would send a strong message.

Time will tell but if SML drags out the need for finance will weigh more and more on the SP im just cautious on this current run up and how much genuine momentum is in it