why stone are buying into cre, page-3

kiwioz

you have spoken the unthinkable.It is rather a dis - service to FML as a shareholder to value,your assets so over generously for your opponents benefit.

I think a bit of reality in relation to a minority shareholding is due

Without total control,A very likely possibility is that FML will run this partially owned entity as a cash cow for expenses,with FML being the main contractor and so creaming a comercial margin off the top.Take 10% on all expenses and CRE will have little left.At the $20m profit you suggest,lets deduct a good $15m for that.Then Full dirctors fees and of course,Cre will only have to supply accounts to shareholders annually for the AGM,with no other information other than financial accounts supplied.
I just don't see the large value you have calculated for a 10% holder.
FML only have $13m in the pot and that's secured,earning interest,so they can afford to wait and milk this business until the milling contract expires in 20 months.
YUP 20 MONTHS AND IT's ALL OVER.

Then what are tenements and a company not producing ore worth?

Given the expenses that will accrue from CRE as a seperate entity i suspect the cash will predominantly flow to FML.

Valuing a 10% orphaned shareholding on this basis,gives a very different valuation.
As i have said before CRE's been on the block Globally since the deal was struck and no takeover deal has surfaced.
I BET AT STONES DISGUST

SO CRE AS IT IS IS WORTH 6.5c/share

and run by FML as a milking exercise of a subsidiary,it could be darn near worthless as a 10% investment.

Ask the owners of native titles anywhere in the world,how much they see for the mineral wealth taken from their tenements.Stone will probably experience that same sinking feeling soon as this game of chess gets played out.

DYOR-search out a few orphaned holdings and you will be amazed at what's owned but inaccessable and valueless to the minority holder as they see nothing from their asset.
All above board and on commercial terms of course.
FML HAVE MADE THAT PLAIN-see the bidders statement.

Yes stone may have been hoping for a free ride on FML's management skills,but like all things in life -----there's a price and when the only vendor sets the price----if you want a drink of coke you've gotta pay the going rate.If it costs more than you can sell the rum and coke for your bar ends up making a loss.What's 10% of your bar worth then?

The only winner every which way in this is FML.Hold,sell,wait 2yrs,competing takeover,you name it,how can FML lose.