Okay, all joking aside, that announcement was ABSOLUTELY UNBELIEVABLE!
Like I have been saying for ages, GoldFields have been all over this asset for a few years now and that surely meant they liked the quality of the Silver Hill asset? To me GFA were always like an external auditor who were confirming the SH discovery, and by their very presence, it also hinted that the resource could be a real big one! Sadly however, by early 2008 I was horribly underwater on my original CQT investment, but I stuck with it (and added to it) on the basis that GFA were still there, and were still sending signals that they continued to like the asset.
And now we have this announcement... and OMG, what an announcement! If anyone ever had any doubts (are you there Vic?), just read that glorious CQT announcement!! Maybe I'm just an optimist, but there appears to be some incredible messages in there;
"CQT invited GFA to withdraw from the JV... but GFA declined to do so." - why not bokkies?
"GFA's decision to cease or suspend drilling coincided with its offer to CQT to reduce the Drilling Requiremement" - was that an attempt to bully CQT bokkies?
Without waffling too much, I think we appear to have a classic "David & Goliath" story unfolding here, and already the press appear to be lapping it up;
I have waited a long time for the true value of CQT to be unlocked, and I think someone found the keys this morning! Surely the PFS NPV of $300m is the bare minimum price if GFA decide to make a bid for CQT? That of course equates to something like $1.15 per share. However, $300m is based on the what we have all agreed previously was a very conservative NPV... so it begs the question;
What is the true value of CQT?
Please send your answers to;
Mr Glenn Baldwin Executive Vice President Gold Fields Australasia Level 5/50 Colin Street West Perth WA 6005
I suspect that he has the correct answer written on a piece of paper in his top left drawer (hopefully the piece of paper is a GFA cheque!). The winning entry will receive a slab of Castle, a Springbok jumper and a nifty plastic Nelson Mandela doll complete with Zulu shield.
CQT Price at posting:
52.0¢ Sentiment: LT Buy Disclosure: Held
