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06/10/21

09:45

Post #: 56593984
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Originally posted by Gwaihir: ↑

I think that now it holds only 50% of the project, and there are some environmental issues, which I'm sure will all be resolved in time, though it may cause a delay in the time-frames, then as I've said before, it may probably get down to about 45 cents or so, I'd expect, which would seem to be about fair value at this stage of the cycle. Then I'd expect some stabilization around that price until all the funding has been approved and a final pit design is in place that has been given approval by the environmental authorities. With some good luck and management, the delay should only be perhaps about 6 months or so. In any case, given these issues, I don't expect to see the project developed quickly, especially if they are committed to one of considerable size, as has been stated.

It should eventually be successful, but you will need to be very patient I'd expect, and you will always need to remember that you've only got half the project, which in itself will limit the upside to a degree.

In the end, selling half the project at this stage, may turn out to be a mistake. Personally, I like to own stocks that own and control 90% to 100% of their projects. I think I would have rather seen them adopt the PLL strategy and remain a 100% owner of their project. They've effectively diluted all their shareholders by 50% in one quick stroke of the pen - a great pity!

Gw

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They always said that the project would need a strategic/investing partner to move to the next stage...I am confident in their decisions being..what is needed... at the correct time and the fact that the JV will add more opportunity to what is already a well developed and structured project

INR Price at posting: 58.0¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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