cape lambert project unveiled: mcc , page-4

i have wondered about this given substantial disconnect between value of assets compared to market cap by SP.

TS comments during briefing indicated that there had been an attempted raid previously, which was part of reason for SP spike up into the 90c region and that management was looking for ways to deter any further attempts.

TS also said that proceeds from planned sale of african assets (DMC or Marampa after the rail is active with Iron Ore from Tonkolili) would be used to fund some additional african infrastructure (presumably to value add to Pinnacle ground - see briefing map 4b & 4c), to fund a div and then for a share buy back.

He said that he wants to get to ~10% holding. Which i took to mean that he wouldnt participate in any buyback. He did say he would consider selling for $2 a share. I think we all would.

I also wondered about why African Minerals vended Marampa in for shares in CFE rather than any other arrangement. Now im not saying that this was the main reason, but one of the outcomes of that structure is that a 'tame' shareholder picked up those shares, diluted those less tame shareholders and sets up nicely as a blocking stake particularly post buyback (assuming neither TS or African participate).

To be frank I think that attempted T/Os are exciting and lead to very sweet SP movements. However for the longer run i'd pick the existing management to do better for existing shareholders than some sort of vulture fund. They pretty ruthlessly look after themselves first and foremost.