I think your right IronFist.
A few simple questions may lead us in the right direction:
- Does FDL have IO experience? No
- Does FDL have infrastructure? No
- Does FDL have IO in its tenements? Yes
- Does FDL have means in which to drill, mine or transport it? No
- Do FDL directors want to establish an IO company to compete with FMG and RIO? Probably not
- Has FDL got a good relationship with FMG? Yes
- Does FDL want to release more shares for capital raising? Probably not
- Do FDL directors want to be drinking cocktails on a beach? Yes
My conclusion is that FDL directors will not want to spend the next 5 years establishing a mine, contracts and infrastructure, when they could be fat dumb and happy having sold out to FMG or RIO. If FMG are going to be mining the same IO it only makes sence for the FDL directors to sell the company to FMG or establish a JV.
I am not sure what I am going to do with my shares after today, however the ride that we are on is going to be very interesting indeed.
FDL
flinders diamonds limited
