"And as a result end users may find it cheaper to just enter into a contract for long term supply, say a 20 year supply contact for the finished 'product'."
To get that kind of long term contract, they would have to 'pump' money into the company in the form of equity or project capex in a symbiotic process. They have done that here but increasingly with example like the mid west with iron ore they must have realised that it is less messy to own the listed entity and secure the supply 100% with no company risk.
Just looks to me like common sense for them to prepare the ground work and buy the physical asset rather than a paper contract from what they have been doing with US treasury bills. Anyone realise that they are not only buying physical gold but the producer themselves albeit in a small way.
As joker highlighted, they were prepared to lower their bid so I see them coming back again. Neighbour BMN is another that is attracting attention to fit the theory of security of supply for their hungry future nuclear power source.
EXT Price at posting:
$7.77 Sentiment: Buy Disclosure: Held
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