The Board are a very astute lot. Just check the background...

First 106 Last

Share
Profile

Follow
4shadow

2,748 Posts.

83

06/10/21

09:28

Post #: 56593412
Share

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

Expand

The Board are a very astute lot.
Just check the background positions..
Was the main reason for dipping the toe in.
Now we are financed in some respect and permit permitting ( mouthful..) we will be on our merry way.
JV”s are a good thing and to get a partner that they have shows me that it was worth the risk..
The board have stated, they have shovels in hand..
Just need final tick ..

INR Price at posting: 58.0¢ Sentiment: Hold Disclosure: Held
1 Upvote

0 Great analysis

Reply