Any takeover or sale of Gurvantes depends on flow rates, as yet unknown. TMK are doing a great job of implementation, so the uncertainty only begins in July with the pumping. How long to pump to get to desorption pressure? What will the initial flow rates be? For sure they will be low (and slowly build over week and months). But the share price could dip on reports of low initial flow rates. Opportunistic bid?
Only after steady state flows will all parties (in Australia, Mongolia and China) be able to assess value for sales or takeover. It is possible that flow rates, if above average, will increase valuation substantially. Imagine $1 million to drill per hole with annual $1m revenue after first year with the potential for 1,000 holes.
TPD Price at posting:
17.3¢ Sentiment: Buy Disclosure: Held