Other than some support for the Wah Nam share price when they initially bid for Brockman Resources that was presumably withdrawn as soon as they got control I wonder if most of the share price collapse since has been more due to a fall in the iron ore price and a flight from risky stocks to quality ones?
It is a fact that capital is less efficiently committed when individual companies own their own mine-to-port solutions and when some mines which are commercial are not in production because they don't have a mine-to-port solution must mean there has to be some sort of re-arrangement either of ownership of the mines or of the ownership of the mine-to-port solutions or a rearrangement of the ownership of both.
I couldn't really care what precipitates any such rearrangement i.e. whether it is a few percent commission taker type outfit like Wah Nam that brings nothing useful to the rearrangement except to flush out the real movers and shakers (Rio, Fortescue, BHP, etc.) or whether it is the Australian Govt. wanting to encourage new mine to port solutions that brings it all on. All I want is a mega take-over offer for my stock at an utterly massive premium e.g. 500% will do. ;-)
Fingers crossed (had it confirmed today, I got my order filled, so am very happy). Bring on the consolidation of the whole Pilbara iron ore sector.
FMS Price at posting:
3.7¢ Sentiment: Buy Disclosure: Held
