I think if you see a quality company with light bid depth, (in a weak market/sentiment environment) and you hold around 2-4% of stock, it could be tempting to sell some of that in order to trigger a cascade of selling with which you could then use to accumulate. Not saying that it did happen in this case but I'm fairly suspicious about how Citi/whoever is behind them has accumulated 8% on such light depth without some sort of earlier disclosure?
I'm sure all will be revealed in time - no point speculating at this stage. One thing I do know is that no low ball offer is going to get to compulsory acquisition threshold with the core group of shareholders so I am not entirely worried about a takeover situation.
I'm not anticipating the next drill results much from existing areas - more interested in Jumbo/Yandi headwaters.. Reason - they've been nothing short of spectacular thus far and I think has derisked the Railway deposit enough that it is almost certainly economic and therefore any further drill results will be more procedural with the view to defining a reserve for the mining plan... Still important stuff but not as exciting as a discovery hole lol ;)
We shall soon see who has been buying or selling. Perhaps an overseas fund has been forced to unwind their positions for liquidity reasons Ospraie style??
UMC Price at posting:
$1.30 Sentiment: Buy Disclosure: Held
