fair whack on close, page-5

Remember to buy on rumour and sell on fact. That is what is happening now. Well the buying part is anyhow and they seem to be buying MIS with some flow on support for mmx.

Don't forget to sell mis as soon as the an announcement is made. If the rumour is false there will be lots if burnt fingers.

The logic for those that see synergy in mmx/mis is 2 fold:
1. they are neighbours and will be mining along side each other;
2. Both now have exclusive rights to tender for the port and if mis gets taken out of the equation then mmx cant lose and Yilgarn is stuffed. This seems to be the stongest case. However, you would need the wa govt to sign off on the exclusivity of the port tender before making a t/o bid. They have said it but it needs to be govt guaranteed and legal because yilgarn will cry fowl all the way to the high court.

MMX may be making a mistake if they take over MIS. MMX should save their bucks for more important expenses rather than looking for takeover targets like MIS. Few points in opposition to such a move are:
1.MIS sp is too high at the moment for such a take over.
2. You can expect mmx to win the port tender without MIS. It can't be guaranteed but they would have to be favourites to win.
3. MIS has a 50/50 jv with sinosteel so a take over would net 1/2 the ore that MIS have. Sinosteel have spent a lot of money propping up MIS for a long time and will not walk away.