re: why is it so cheap?
Hi Angus, Just some 'out-loud" thoughts, mate. I was told last week that WMC had 30 rigs drilling at Mt. Keith, which is obviously becoming its flagship in the scheme of things.As well as trying to improve their shareprice with regards to a takeover, a large production increase is logically on the cards.
The reasons to deny access to smelter facilities to others would be: 1. Keep up the nickel price. 2. With a considerable increase in production, toll-treating for others would be of nuisance value.
As for legal contractual obligations, I am sure they would find a way around them. All it would take is one letter....."Dear Sir, your ore has too much Mg content...." Look what WMC did to TIR! I remember in the 80's Seltrust paying up to $270,000 in a quarter to WMC in demmurrage for smelter refractory damage when their ore blend was too high in Mg. Thus WMC COULD have treated TIR ore, with a compensation payment for refractory damage on top of the toll rate if the Mg content was excessive. Dont tell me WMC didnt know about the Mg content when they sold the mine to TIR.
Legal obligations......pah!
Cheers GZ
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