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clock Created with Sketch. 25/06/18
13:26
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Originally posted by kovey
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I believe it is not a coincidence or the divine intervention that all of a sudden three of the biggest diggers in the mining sector show interest in ATLAS Ltd. FMG cannot afford to let Redstone Corporation Pty Ltd, of Hancock Prospecting Pty Ltd to take control of ATLAS! FMG will either come with an offer or accumulate enough ATLAS shares to make Redstone take over impossible that I believe is also impossible. Bearing in mind that there were only two basic factors why ATLAS shares fell from a peak of $4.05 to $0.01: Sharp drop in iron ore price from $168 to $52 and FMG's refusal to allow ALTS to use it's transport infrastructure to be able to reduce operational costs in order to stay afloat. Had FMG shared their rail road facilities with ATLAS the latters SP could not have fallen below $0.25 where it held for a while in 2015 when iron ore price was at its lowest. FMG have always viewed ATLS not as a competitor but as a bad enemy; a threat to their own business. What they publicly put out is that ATLS is not a viable business but hypocritically kept buying ATLAS shares. They now own around 20% of this bad business!? Why? Just to have a stranglehold. If it is a bad business why own a major chunck of an unsustainable business? Firstly to improve their own bottomline in bad times and secondly for a rainy day like today when iron ore price at $73 is tipped to move higher and higher. Hence the trio of Min Resources, Redstone and FMG. showing up at the same time! Redstone is owned by Australia's richest woman. She has a big big purse to make ATLAS a really profitable business and this is the real nightmare for FMG management. As of today FMG don't have enough leverage to block Redstone deal and I don't see them throwing in the towel either. They can make Redstome take over a difficult one but their best option would be a counter offer. ATLS holds huge resources for years to come and highly valued infrastructure and I doubt FMG can afford to ignore the nightmare that's unfolding right under their disbelieving eyes! As a small share holder I am happy to wait for the next three weeks acknowledging that there's always a downside to playing stock market. I think the upside far outweighs. Good luck to all small share holders.
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58% $38.57USD/$51.99AUD. AGO is in the 58% stand alone market now as the Chinese so brilliantly manipulated last winter.
