Ann: Tomingley Debt Restructured, page-179

and since we all had to rewatch the Crux interview few times to work out what Nic is trying to say I also picked on something else... when he talks about possible JV for NMPP he mentions he wants to have discussions on how NMPP will be operated.

Even though he is not clear at all what he meant by that statement (this is almost the case with everything this MD says), I think it is worth to consider the below:


"..and then mature discussion on how it will be operated.." but no further detail on what level ALK want to be involved and what value ALK brings to the table. Is he suggesting ALK wants to be involved or is he suggesting they only want to have some visibility so they gain experience in case they want to go solo in an event of another large discovery?
If he wants deeper involvement on the operational side - he needs to show that ALK has something to bring to the table. In my view they have less than nothing to offer on this front. Yes, less than nothing.

for a major to have mature discussion on how ~20Mt plant will be operated they need to have mature people with relevant experience on the other side of the table. ALK can't get their heads around 1.75Mt plant but want to have mature discussion on how 20Mt plant and massive mining operation will be run.

However ALK does have something to offer during the development phase:

ALK should insist to be involved in areas where they can bring something to the table aka where they have expertise - and that is approval processes in NSW. This has to be recognised and any JV partner should allow ALK's involvement at this level and ALK be compensated for it.

But I doubt RIO, NEM, BHP or Anglo will be ready to have mature discussion with ALK when it comes to operating a porphyry monster.

I am bringing this up as I've seen cases when amateurs try to punch above their weight and end up being burnt as serious partners will simply walk away from the deal.

I already saw one m&a deal/opportunity being wasted by this mob and not going to stay silent only to see another one being blown up because someone wants to put personal interests ahead of majority of holders interests.

Yes, in my view, ALK were in the driver's seat to take GMD and fell asleep behind the wheel which allowed the former SAR guy to literary snatch the deal from ALK's hands and showed them what they should have done (make TO move, friendly or hostile) before he had a chance to get involved. Now he is showing them how to grow a company.

And GMD's MC is multiples of ALK - which is all people have to see.


all my own views.