I don't think Exxaro will bother with a low ball bid.They would...

I don't think Exxaro will bother with a low ball bid.

They would know full well that the top 20 holds over 80% so while the share price is only $1.30 it doesn't really mean anything.

Also I don't think Exxaro are the only ones with an eye on Mayoko. The fact is there are very few Iron Ore assets owned outside of the big boys with near term production. If Exxaro start with a low ball bid a bidding war may begin. I dare say that if that does occur they won't be the bidder with the deepest pockets. Would be wiser for them to try to get a very quick agreement on a fair offer. Furthermore it will be interesting to see if the bid will be for the whole company or the Mayoko project alone. I hope it is the latter.

The first few drill holes suggests we have some very good ground in Bandondo. If I were management I would prefer to hold on to that and do a bit of work on it to see just how good the asset is. No point in putting an arbitrary valuation on it and sell it with Mayoko when the value could be significantly higher.

Keep in mind down the road from Bandondo, Sundance are under takeover for $1.4bn. I am certainly not saying that our Bandondo asset is worth this much, but I would prefer we find out before we sell it for an arbitrary $100m on top of the Mayoko valuation only to find out in 12 months that Bandondo is a monster.

I think the next few months will be interesting.