selling almost finished........., page-10

This stock is going to continue to trade at a massive discount to its real value until the deal actually goes through and the first payment is made in June......what happened with Ding is still in fresh in everyone's minds and there is no real faith in management yet to make the sale go through...

i would expect this one to trade between low 40s and mid 50s for the next month or two, until we start to recieve more positive news of progress being made

at first i thought the strategy of selling their main project in full wasnt a good idea, simply because it would be more beneficial (over the longer term) to invest teh capex and get it into production. However the fact is that cape lambert is a fairly low grade, magnetite mine (reasonably high silica levels too) and there was also the issue of whether they had access to Rio's port nearby.

Hence, probably best to flog it off while IO prices are going through the roof, and invest in a higher quality mine somewhere else.

cheers