re: takeover/ real reason Long time follower of azr.The Koolan...

re: takeover/ real reason Long time follower of azr.

The Koolan island story is a good one. Relatively small but high grade resource with a potentially premium product. Ideal for blending with feed from other sources. Deep water channel near-by, no rail or road, essentially mine and ship. Won't support large scale mining likely (peak production 4 mtpa) and would have no significant not impact on the bottomline of a large resource co (eg BHP).

Portman made a lot of money out of Cockatoo Island just across the waters from Koolan, with older loading facilities and the need to build a seawall to access deeper resources. Koolan has fewer technical issues.

On current resources of 45mt expect a mine life of around 4-5 years (not all to the resources will convert to minable reserves). Traders and end users of the ore may have a different view to big resource co.

The sp reflects the failure of the board to get the story across to shareholders. They burnt a lot of option holders in a way which could have been avoided if they had been doing their job. Obviously they are getting the story out to select institutions and investors. IMHO the sp should be over $0.40.

As always do your own research.