same old problem, page-2

robworld,

understand your frustation, but you seem to be suggesting firm knowledge of rejected (buyout?) proposals and at a specific price point of $1.50 which seems unlikely. I'll assume you are simply 'reading between the lines'. But rumours/gossip etc. only gets you so far.

The fact is no 'rejected offer' announcements have been made by SPH and your guesswork may prove way off the mark.

Let's take the company announcement at face value:

"These proposals will now be evaluated and assessed by Sphere and its joint venture partner SNIM to determine the best development options for the Guelb el Aouj Project, and Spheres other iron ore assets in Mauritania"

Whether Guelb el Aouj gets off the ground or not depends on how badly bidders want to control a strategic resource. In fact, short-term economics may not be the main driving force when it comes to a bid price. Securing a long term iron ore supply (20 years plus) independent of Rio/BHP/Vale may be more politically important, especially to Chinese interests.

A potential bidding war is in the offing where opening bids are just that, and I'm sure there will be plenty of posturing on all sides. Management have sufficient cash on hand (@15Mill) to drive a hard bargain or simply sit it out. In fact, they seem to be merrily drilling away at Askaf with a view to supplying Chinese mills independent of UBS bid process.

Interesting to see how this all plays out but a little patience still needed....