clarity and genius

further to a marvelous post on another forum this evening by the erudite LE esquire, and one which started me a-thinking about something that didn't quite smell right about all this.

Actually it's right there for all to see ( except perhaps those who are not as closely associated with the unfolding events over the last year or so as us long tremors)

In a nutshell I don't believe Hohnen or the rest of the KAH board ever believed their shares would be sold to the Chinese for 2.90 quid despite apparently recommending the deal. The reason, as LE pointed out is simple, Neither RIO or Itochu would ever agree to the deal. The comparatively minor percentage of board-held KAH shares that would (the board having agreed to sell their own shares for 2.90) have to be sold into the deal were always safe because the Chinese were never going to get past KAH SH approval!

Hohnen has IMO set up the first stage of competitive bidding tension
by drawing out the first contestant, too frustrated to wait any longer, and eager to test the waters before the DFS hits the fan! (couple of weeks at most).

In doing so, he has got the Chinese to put a mid-ball "possible" offer, whatever that is, on the table to shake the RIO snake from it's wood pile, AND guaranteed either of the following possible scenarios

1. The Chinese go home and KAH pocket the $7odd million break fee, as well as drawing a line under a low-ball offer for all to see.

2. The Chinese hold the bid for KAH, and necessarily for EXT where it is at the moment or risk being locked out for 3 months under LSE rules, and it subsequently fails to get SH approval (KAH or EXT)

3. Having failed to get up, the Chinese bid must then either be raised to have it succeed or more likely, to top what will then be a counter bid from RIO etc etc... you get the picture

You cannot have a bidding war without at least one bidder, and Hohnen has one in his headlights. Forget all the posturing about suspending N-plant development...Bollocks! A few months ago they were going to re-use all their existing uranium to save having to buy any more!

The way it stands now, The Chinese either have to pay us what it's worth or they lose the game. In this game of strategy, they have shown a critical weakness...Frustration.

VERY shortly the irrefutable metrics of not only the resource (and by no means all of it), but the entire ENTERPRISE will be there for all to see.