Sydneysider, someone big has been buying POS which has become the Second Force in Nickel Ore (similar to the FMG moto & set up) with 40% of its shares traded since 2 July we will find out soon, from what i know it is some FMG LTHs, and maybe ruskies in hiding through offshore trusts to recover their $7B through POS share appreciation but more likely the FMG and IO crowd that are piling out of IO stocks as they hit 6 year lows with the spot IOP collapse.
LJ is value accretive but DJ Carmichael's Paul Adams has not given a TP yet or any NPV figures unlike Petra 44c NPV and pattersons 38c TP which are much more thorough analyses. Adams has now promoted the stock in the 2 most read WA newspapers and has put his head on the block if he is wrong which i doubt he would do unless he thought it was going much higher. He knows something for sure, he must have been buying in well before, the timing of this is suspicious. They are not hiding the stock anymore as when they had the CRs for dirt cheap, its going on fluoro signposts WA wide. This means they are set and its time to spike it, thats the message i read.
I thought the POS asset value was $800M but i remember that Norilsk bought lionore and developed these Ni assets in WA for $7B, so although POS didnt get all of them the depreciated value of these is much higher than the market is giving POS credit for, It surely must be worth $1-$2B when fully producing.
The market thinks there is some quid pro quo to Norilsk it cannot be this cheap, whats the payback. The market also thinks that they only have $4M cash so it wont reopen, Norilsk assets are "dogs" and worthless. The market is wrong and so have been all the sellers to date since April 2013 POS has secret weapons at their disposal, they have AF, the FMG & ANL old boys in there, they have the resources and contacts to get funding, the question is who, how much and does AF contribute. If AF pitches in and the funding is good, watch out for that spike. They would not have bought these assets without that funding guaranteed - it would be like a jobless man with $4k signing a porsche car purchase contract for $200k knowing he cannot pay for it and POS are not like that at all.
The market has been behind the ball every time on POS, the brokers have for years been talking it down and now they are talking it up and trying to find sellers on their books calling me even to sell at 17.5c! Now you have DJ Carmichael's Paul Adams and Klinger on board as well saying :"value accretive" in the west newspaper today which promotes the stock to WA investors. This seems a well planned media strategy and the unleashing of the bull beast is on with the cards being revealed one by one every week now to show 5 Aces and brokers and the market cannot believe what they are seeing as each card is revealed. Targeting WA business readers last 6 days.is a planned media strategy to put in loyal locals into the shares before it rockets with more announcements and mine restart December-January.
From what i know the 2 CRs one was a perth group and Petra capital of 24M so i dont know if petra may have offshore trust funds to the ruskie oligarchs, maybe this is their refund through SP appreciation, one will soon see in the top 20 lists, if it is i say excellent work better them than glencore or nasty US bondholders with negative pledge certain default clauses. It would be a form of assets for shares swap if this was true.
I agree funding is a done deal, DS said it himself when in his video he said windarra will start first & we will spend time and money drilling LJ to upgrade mine life ie cant do that without $37M cash in bank in the next 4-8 weeks. Value Accretive time.
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