EH mill is what Xmen want to make more productive and what AOH can use to reduce capex and save time to generate substantial earnings. Don't think we have been missing this and expect the negotiators discussed this pivotal factor, though it does cut both ways.
However, where I disagree SOTR, is the independent valuation is exactly that, and won't be brought to any table until it is finished. So don't see EH having a bearing on it as believe the valuation is of the resource, with no consideration of whether EH is there or not.
i may be wrong, but understand the valuation will be for 51% of those relevant areas of the Roseby resource. So believe it will be along the lines of what Ecxo got for Mt Margaret with variations for todays pricing per resource and grade etc, but not for distance to EH or any other EH factor.
Maybe other posters can comment on whether EH will be a factor in the valuation as I would not have thought so, but have no experience in this.
If Xstrata accept the valuation for the 51%, AOH have no counter, unless Xstrata wish to use the valuation to negotiate for all of Roseby. Which is another discussion altogether, and in my view unlikely.
The valuation must be nearing finalisation, wish I was a fly on the wall.
AOH Price at posting:
28.0¢ Sentiment: ST Buy Disclosure: Held
