PSC 2.0

Thought it was time to focus on the future with a new thread...

We've now got MG / MS / Weiss at circa 10% and building - these funds are not buying in the mid 80s for a low 90s dividend. I suspect they see that dividend / ROC as a way to essentially get a completely free stake in PSC 2.0 (they would have poured significant resource into their DD).

My guess is that Sam and the team (after chip sampling / geo-mag surveys and some trenching etc) will turn the step-aside tenement into swiss cheese within 6 months... Then JORC and Scoping study within 6 months of drill results then PFS / pilot plant / customer qual within 6 months after that. All very reasonable timelines given they know exactly what they are doing, where they are doing it and who they are doing it with (not to mention the significant gov support and relations they now enjoy). Also, no time consuming / inconvenient / SP destroying CRs / SPPs to endure.

They're also retaining c. 50 odd mill, that's more than they ever raised to get Arcadia to this point. In my view this is the ultimate rinse and repeat (with the very real potential of a serious acquisition or 2 along the way).

At the end of the day, I'm pretty happy with BODs decision on Arcadia and given the financial risk profile moving forward (all things considered) I genuinely think this is a responsible win-win, low risk outcome for the majority of shareholders. Like most retailers I'm hoping for the best possible tax outcome (including the possibility of selling some of my retail holdings for the CGT discount and buying back in through super or trust for the divvy etc).

However, more importantly I'm increasingly encouraged by the future potential here, and I'd definitely back this management team in to get it done again.

GLTAH!

Cheers,

Powerage.