i havent jumped to any conclusions but I do believe a CEO should have one focus and that is the company is he supposedly leading. What monumental progress has he made? Hes sent some samples to China thats good, he has someone to buy the manganese, but thats neither here nor there to me for 2 reasons. 1. we are talking about a commodity product, if you have it for sale there will be buyers,and the price is governed by the market of lots of buyers and sellers. its not like you are trying to sell a one off peice of antique furniture that no one knows if there even is a buyer or what the price may be.
If I was lending someone the money to build a manganese plant I couldnt care less whether they had a buyer lined up. I would simply care about whether they really had a product and the expertise to get it to market. A JORC for example would be far more important than an offtake agreeement.
2. Secondly an off take agreement is absolutely meaningless unless you can supply the product.
Q. If Sinosteel were so desperate for Kaboko manganese of which they are apparently going to be buying 20,000 tonne a month for a spend of about $72 mill a year by my calcs, why wouldnt they stump up the couple of lousy million it is apparently going to cost to get it up and running in a few months...they could own the whole damn company for the price of 2 months supply of manganese. Beggars the question dont it?
KAB Price at posting:
1.6¢ Sentiment: Sell Disclosure: Held
