reward your portfolio

Cheesy title to the thread. Not my idea, asked to do it by a colleague. I would have called the thread. 'Background noise distracts attention from major announcement.'

The background noise is BHP's bid for Canadian potash resources. This has brought recent attention to RWD which without further news is proving unsustainable. Not that BHP's bid is not important and it certainly highlights the value of potash as a resource at the bottom of its value cycle. To me the big news is LM. The TOs want it, we want it, we are formally negotiating commercial terms with the Tjamu Tjamu who own nothing else to speak of.

The last quaterly suggested that LM could be agreed by Christmas and the latest news supports this. With previous disappointments and such slow progress on a number of fronts it can be easy to forget that just one project delivered would have an enormous effect on the sp. Last time the market thought we had a deal the sp was $2,50. I would be very happy with $2.50 by Christmas.

LM is the good news, I am concerned about Moora. When Moora was first announced there was this air of indecent haste about it. Hurry, hurry, hurry. We expunged crown land from our claim so it go through more quickly. We were informed that engineers were already working on the process and that we would buy the cheap farmland to further expedite matters. The chairman announced at the AGM that we were 'about to start drilling and the results would be back by the end of the third quarter'. The AGM report said that 'Moora resource assessment was in progress.'

Now we are informed that nothing has happened and we are still awaiting approval. So the Chairman and the AGM report were wrong. Incompetence? Misinformed? Misleading? No explanation has been offered as to why the contradictory reports. I fear it might be bad news driving this dissembling.

On a different front the potentially huge Canadian style deposits at Adavale, Carnarvon, and Officer are attracting j/v enquiries. I believe the enquiries are from Chinese and Canadian interests and the delay is whether we can get an upfront fee as well as drilling costs. This would be great in negating the need for capital raising. Remember that when LD looked like going ahead we were offered over 100 mill to buy in. These big Canadian style deposits will lead to RWD becoming subject to takeover attention more so than LM.

Personally I can't see RWD being a stand alone entity this time next year and if the sp drops back to the forties I will be topping up.

Pagarsi
(Back from a well deserved month in the sinbin. I am still happy to be a clearing house for goss, factual and speculative.)

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Pagarsi