Good analysis of the facts HotRods, I agree entirely. You make the point well that when we analyse the facts with a cool head, MAK stacks up well as being significantly undervalue at present & has been for a while. IMO everyone is waiting for the 'company-making' deal to be done with the Asian investors and unfortunately that can't be rushed. (In fact it's absolutely critical that they take the time necessary to get it right, because we'll be living with this deal for years to come.) Though once that's ann'd our sp will absolutely rocket. IMO there is little doubt that the deal will be done. it's just a case of 'when', rather than 'if'.
And why is this deal so important? Because RP is not north of US$200/t. If we could get $250+/t then our freight cost wouldn't be such a factor for a DSO operation. But RP is between $150-180/t so we're better off focusing on value-adding & also building associated infrastructure incl rail spur. We are steadily putting in place the foundation of a large multi-decade global fertiliser producer, and as part of that we need significant capital, which the Chinese have along with plenty of motivation. China needs RP for their growing economy & urbanizing population. They need food security to ensure they minimize civil unrest in the years/decades ahead. Is MAK their only option? Definately not, but it's a good option for many reasons & certainly better than Legend, which has successfully attracted Wengfu's attention, not to mention IFFCO's. We have a bigger, better, more proven resource than Legend and its located closer to rail & closer to a better, more expandable port, being the Port of Darwin. Whereas Legend are focused eastward to Townsville, due to their more eastward location. For these and numerous other reasons I strong feel that MAK has attracted Chinese interest which will crystalise soon into a deal that will take us thru to profitable production over the years ahead.
I look forward to the ann.
Cheers
Anyway
AEV Price at posting:
32.9¢ Sentiment: Buy Disclosure: Held
