For any of RWD projects to proceed funds going to be needed. Given Mr Ruane has the majority of shares on issue and would be equally as loathed as shareholders to dilute at this point in time, he may well simply be hoping to just sit and exist until one of two things happens:
1. LD gets a wand of intervention in RWD's favour. Australia needs the potash more than the Martu. Recent action by Colin Barnett in the Kimberley is proof governments can and do intervene (but rarely for minnow companies). 2. A bigger fish seeks to take over where Mike has left off. Time is the only weapon Mr Ruane has as he knows how to put a company into effectively care and maintenance with impressive low cash burn when needed. One thing few credit him with is the ability to conserve cash. RWD is a lean mean machine.
Potash is once again going to be the last of the fertilizer commodities to move north again. Farmers first apply phosphate, then nitrogen and then potash (if necessary).
RWD Price at posting:
39.8¢ Sentiment: LT Buy Disclosure: Not Held
