dcm - a set up sale!

Tusker, I have done a little research on DCM, they are a trading company with their fingers in many different pots but they are not a mining outfit but rather kind of a middle man between the mines and the customers. Times are hard in the trading business especially when you are buying high and selling lower! Saying that god only knows what went on before DCM stepped in and in fact if it wasn’t for DCM AZC would probably be dead and buried.

Then there is this kind of special relationship “no prejudice meetings” with OZC who bailed DCM and AZC out. Who knows what is going on behind closed doors but I have a strong feeling that DCM are setting up the sale to OZC. This has probably been pre-agreed with perks for DCM who needs to sell before the autumn of 2013. If you read between the lines in the text of the latest announcement:

“Orient has also entered into a long term off take agreement in respect of 30% of the product produced from the WIM 150 project area”.

The banks love this (a guaranteed customer) and it’s probably what AZC needs to complete the BFS. When DCM are ready to sell the WIM 150 the only logical buyer in my mind is OZC who will become the outright owner (100% of the WIM 150 project) and the products will supply its mother company’s on-going needs.

We are shareholders and own part of this deal so surely AZC with its new Chinese owners will have to re-list at some point. There must be some kind of legal obligation to current shareholders if AZC wants to start mining and operate as a going concern!

Cheers buddy!