umc worth $200m no rail, page-32

red,

My calcs were meant as purely a very quick back of envelope on spur of moment. But thanks for extra calcs. Bear in mind that UMC has done a lot more drilling than PLV and PLV's resource is expected to be 200mt within next year. Plus, they have what appears a worthwhile copper-gold site (two in fact) in Tassie (tho to be fair it prob wouldnt be factored into a purchase atm). And then there's the issue of access. The island location is a winner.

And let's be honest the UMC deal was a bit of a discount because BHP (and RIO) have control of the infrastructure in the region. What would UMC do without access to the rail network?

Also, only $6m needs to be added to market cap not $20m as the other stuff is for drilling and enviro studies etc. so irrelevant if there was to be a t/over offer (not that I think there will be). Indeed, I think the recent report said they needed $15-20m to take the site to feas study in 2011/12.

Anyway, my comments are prob rather redundant as t/over in next 12 months is unlikely IMO. Bottom line: UMC shareholders who bought in the past year are winners and PLV shareholders will end up winners in the long-term (IMO - of course)...