sce strong buy target $1.50, page-2

Deansy,
I could not let this go through to the keeper without some measured response.

First, thanks for posting - always good to read what people are saying

Second, I personally do not have much faith in the credibility of Charlie Aitken. He has made some absolutely stupid calls in the past (FMG a buy at $12 for instance). He is a raging bull and does not often provide good supporting data. He appears to shoot from the hip and does not care about collateral damage.

Third, Tier 1 definiton is

a)Low cost - tick for P Hill
b)Low soverign risk - tick for P Hill
c)Better than average grades - tick for P Hill
d)Big - cross for P Hill (for Copper, big = 200,000tpa or more)
e)Expandable - cross for P Hill. It has no defined expansion ability other than already announced. (This may change if exploration around P Hill succeeds)
f) Long Life - cross for P Hill - It has currently only a 10 year mine life. Long life is 15 or 20 years or more.

So, P Hill scores 50% on Tier 1 definition. Why has BHP not offered a bid? Because it does not want to destroy shareholder value. Until another P Hill is discovered close by, it will remain Tier 2. Finding another P Hill would tick 5 of the 6 Tier 1 boxes and BHP would say thanks and take us out. So until then, IMO, Charlie is wrong on this.

Dividend - possible.

HT1