Hey guys - really pleased you've all got the positive news and $ potentially in the bank. I confess I sold last week to free up liquidity because I thought PDN deal was dead - so my timing sucked ....please feel free to abuse me for my cloudy crystal ball.
However, my overall concern for the whole deal revolves aroudn a couple fo things one of which is over emphasised by SMM in the subsequent announcement ...the overturning of no U mines policy in Qld. Whilst nationally the ALP might give it the green light what about Queensland. Does Beattie have the backing of the rest of the state parliament to say no. My view is that he probably doesn't have enough support ....yet. He probably will but there will be a lot of argy-bargy in the interim.
The subsequent announcement by SMM states without the removal of mining policy the share price would fall - a result we would all expect.
Is this why the current SP has gravitated towards $5.80 and not the full value of the JV partner’s offer - risk vs reward.
I am not trying to down ramp but merely think it is worth thinking about, because I believe a lot of people when they think about the situation and the risks MAY come to the same conclusion.
I missed the boat on the massive upswing this week but congratulate those that stayed in....you deserve it...but times ahead need to be viewed with an air of caution. I am re-aligning my U portfolio towards those with deposits in SA, NT and overseas as this is where I see the growth coming from after the ALP conference.....
Unless SMM falls below $5 again I won't be buying again until after the Qld mining policy is clarified formally.
Just my thoughts...no intention to downramp ...but please DYOR.
SMM Price at posting:
0.0¢ Sentiment: ST Sell Disclosure: Not Held
