I have kept silent for a while now as had nothing really important to add.
I do however share your view. $1.50 is realistic if NKP can put pen to paper on a JV.
NKP mgmt certainly cannot run a PGM mine and would probably have no idea how to do it properly. We however are not asking them to do that but to partner with a firm that has the financing and know how to bring to market the most exciting new PGM resource for years.
There are multiple ownership issues but that just confirms how sought after this prize is. To me it looks like we will end up with less than 50% of the expanded Garatau but from where we are now this makes little difference. It may actually make business sense to sacrifice something from Garatau in order to get the deal and then the company can take its time on what is left of Tubatse where there would certainly be a go it alone option but more importantly interest from xstrata for the synergies with Lion.
As you say these are just my opinions and everything may go totally wrong, but that is the risk one has to take for a potential 5 fold increase from current levels.
BR Max
NKP Price at posting:
28.5¢ Sentiment: Buy Disclosure: Held
