What does it mean for SFR if the Nikko deal fails? The market...

What does it mean for SFR if the Nikko deal fails? The market has been betting that the deal wouldn?t fail. The fact that SFR has put out the "no deal yet" sign today 2 weeks before the deadline looks like the deal is dead to me. Normally a telephone call to the FIRB gives an indication on what they are thinking. I would say that telephone call was made today with negative results. The deal with Nikko was that they would take 18.7m shares in SFR @ $5.02c a share. The company has been riding on this deal assuming that Nikko would then finance the rest of the $1.5b to bring the project into production within the next 4- 5 years. But with the market and hype behind this stock has sent it beyond its true value and has become a betting scheme. One would assume that if Nikko did not proceed then someone would take their place at a higher price. Uh, uh this won?t happen, the market will not like this event and SFR will get punished tomorrow and OZL which is the only other entity interested, won?t pay anything like $5 a share. Ozl will have the deal to themselves if they want it as they already have 20% of SFR which can block anyone else. Look guys at the end of the day the resource at Doolunga is a small resource, sure its high grade, but its years off production and in the real world its considered a "Toy Copper Resource", The Koreans rushed in and now they?ve had time to think about it, its underground, it?s in the middle of nowhere and its deeper than the Chilean Mines depth, just to access the ore and then keep going down big bucks imo. This will chew up $1.5b and Mine will have a life of about 5 years. When you are mining 6-800m below surface it will need every bit of the 5% copper to make a buck. Sorry folks, but it is what it is. Back to CDU for me, good luck everyone, all is above is imoo.


Ikey moses