In My Opinion:These guys are still not talking enough about...

In My Opinion:

These guys are still not talking enough about multi-commodity potential. They have a company heritage which has been involved in many mineral commodities but until recently were still dumping other mineral assets to concentrate on the down sector - mineral sands.

In 2002 they should have spriuked their new mineral sand projects in the Murray Basin to the market. Got the share price up a bit. Then done a large share sale capital raising that covered debt, capital spending in Victoria with some excess cash. The proviso would have been an aggressive growth strategy and to diversify to other mineral commodities - back in 2002 they could have had Portman mining for around $300million (now around 2 billion market cap).

How much healthier would they have been?

Instead shareholders have had to bare the directors and managements introversion since 2002 and a market cap that has averaged 1 billion and seen the company drop off many market indices. The new guy said he was different but still not enough talk about multi commodity potential. A multi-commodity exploration budget of around $4 to $6 million per year could be yielding alot of good results for this company.

Longterm shareholders should have an investment in a diversified mineral producer with market cap around $8 billion by now. Instead we have an investment in an introspective organisation - that has decided to put all of its eggs in one basket and become a mineral sand specialist (fortunately still holding the mining area c royalty that they were planning on selling up until quite recently). This has resulted in our company still having a market cap of around 1 billion dollars despite the many years that have passed.

I personally think that aqcuisition is no longer an option at current company values. But this company should be unlocking multicommodity potential from within their existing licences.


Disclaimer: the above post is not to be considered fact or advice in any way whatsoever. It is purely for entertainment purposes.