Its simple really all you have to do is join the dotsIt all...

Its simple really all you have to do is join the dots


It all started a few weeks back

27/5 Old management (Richard Oh) given the boot, new chairman who is a principle of Ascot Securities (the brokers behind ACS) appointed

29/5 Large share transactions at a very large premium go through almost 9M, turns out Rich Mark Development bought 7M at an avg price of 16c-17c

11/6 ACS gains 100% control of Mt Gibson for peanuts

6/7 Accelerated drilling and resource development program at Mt Gibson
Rich Mark acquires 1M shares off mkt at 20c note share price at the time is 15c so 30% premium
Rich Mark also acquires 10M 31s July 2010 12c options for 13c each, this implies a price of 25c per share

Whats happening here? well it looks to me like RichMark see's alot of value in ACS and is prepared to apy 17c - 20c and even 25c for the shares

The purchasing of the 10M options for 13c is the biggest vote of confidence as far as I'm concerned

And why do they see so much value? Well in 2006 when the Iron ore price was about what it is now so well before the hype, MGX sold Extension Hill which had 250Mt's of Magnetite for $50m ACS are targetting between 300Mt's-500Mt's

If we use the MGX sales as comparative value then at the lower end Mt Gibson is worth $50m and at the high end $100M to ACS = 45c - 90c

Not hard to see why Richmark are so interested in buying all the stock they can