1. Why do you want leverage to a stock that has zero political risk priced into its shareprice? Namibia may well one of the tamer Africa nations but Malawi is much more populous and a nation that struggles to feed itself year in year out.
2. Can Paladin double from $8 to $16 in the same time Summit could double from $4.50 to $9? The answer of course is no when you consider that the removal of the Labor ban on new mines will come into effect after the party conference in April. Following this decision you will see sophisticated funds heading straight for Summit given it will be a significant uranium producer in a seriously safe country.
3. The spin off of the rock phosphate and iron ore reserves will prove highly profitable to Summit shareholders particularly given the raging bull market that is developing for fertilizer producers. Virtually all rock phosphate supplies are currently sourced from Morroco, Peru and scerics from depleted Pacific Island deposits. Incitec Pivot, Australia's only fertilizer PRODUCER has seen its share price move from $25 in October to $48 yesterday. Australia's rock phosphate deposits hold considerable value. This will not be realised by Summit shareholders should they accept the Paladin offer.
4. You have a committed management team led by Alan Eggers who has patiently waited for the opportunity to turn Summit into a uranium producer through the darkest days of the uranium mining industry. Similar to John Borshoff except Eggers in my view has played smarter by sticking to the sovereign safety of Saudi Australia.
5. This will not be the last takeover offer!
REJECT THE OFFER! SUMMIT IS A ONCE IN A LIFETIME OPPORTUNITY.
SMM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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