Think it does mean a fixed price, but EQR management should be maturing to a risk off strategy. Many on here were critical of the management to taking the high risk decision regarding additional purchases and more drilling, but they appear to have lost their voice. If the price is fixed, as I believe it is, it is above the price used in the BFS, which will increase the value of a subsequent evaluation. Some were worried about the tungsten price falling, this strategy, at least for the 30 million, removes that risk.
I do however, think that the tungsten price will increase.
EQR Price at posting:
4.4¢ Sentiment: None Disclosure: Held
