did a fair bit of research on MAK UCL and their respective projects and here's the 1 question I kept asking
Why did MAK take a majority stake in UCL's Namibian Phospahte project
and the only conclusion I could reach is to hedge itself so that its not a 1 trick pony with Wonrah which makes perfect sense
Now since MAK bought its stake by taking over BON and also buying a 19% chunk of UCL 2 things have happened
1. The resource size for the Namibian Phosphate Project has greatly increased and currently stands at almost [email protected]% Phospahte
2. We've had the introduction of the Rudd mining tax which will effect the economics of Wonrah but not Namibia
MAK should this week release its feasibilty study for Wonrah, Im guessing it maybe a BMN type result where due to a considerable number of factors as well as the mining tax Wonrah is not as profitable as first envisaged
In that case it is only logical that MAK will look to complete its hedging and take 100% ownership of the Namibian Phospahte project
UCL Price at posting:
0.5¢ Sentiment: Buy Disclosure: Held
