re: Ann: Update on De Merger of non Potash As... Bazz, there's a valuation of the non-potash assets in the AGM notice from a few weeks ago. It says that the non-potash assets are worth about 18c, at a minimum. It would be an unlisted company at first, and then raise capital, and perhaps be listed at some point.
The concern was that the notice also said that it was estimated that the share price would fall by 7c at the ex-date, and a few of us looked at the sums, and they ended up being deficit.
What the company has done no is reaffirmed what they had already said- that they would decide when and if this will happen. As soon as they put out this ANN, it seemed like the market relaxed, and the share price went up. Losing 7c off an already low market cap was always a risk. May still happen.
A little conspiracy theory now (I am a non-holder so this is not a ramp, but we can always dream). :) A Chinese company, together with the Eritrean government, decides to do an asset purchase, but they don't want the non-potash assets, of course. So they say they will offer a cash price for potash, but not for Duketon. Then, without the share price having to fall by 7c, STB gets a huge wad of cash, flogs off potash, and begins again- with the same STB code- that contains solely Duketon. Shareholders get a huge cash reward (same as CHN), and Eritrea is behind them, and they still have assets and a known code. They return to being the original STB, as it was, with no sovereign risk, and some great local assets. STB shareholders are rich from the potash sale, and happy to keep Duketon.
How does this sound?
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