Wind in the RES sail...

Here are several ASX listed companies, Group 1AMP, ING, TER, WHC, TCL, TAH, S32, BIN, BAL, NXT, CBA, ANZ, SYR, JBH, NUF, NXT, TAH, TCL, WHC, QBE, IAG, ORG, MTS, WPL, NCM, WES, BHP, WBC, NAB, and ASX.

Now consider;Group 2TER, XRO, GXY, and TLS. Both groups are similar with the main difference being group 1 has shareholders that represent in excess of 50% bank ownership, and group 2 has between 40-50% bank ownership.

In nearly every company I reviewed, the result was the same, with the majority of bank ownership being the theme. Where this wasn’t the case, there were often 1 or 2 significant individuals. For example; DDR, the original owners held the majority shares today.

The main banks consist of, but are not restricted to; HSBC, JP Morgan, Citicorp, and BNP Paribas to name some of the main players. So how is this related to RES?

RES to date has only 6.4% bank ownership. So as we are funded and we move into production the mine de-risks, expect some serious buying by banks.

In many examples of the Australian listed companies in the groups above, the bank ownership was 60-80%.

So, when you ask yourself who will buy the majority of the shares after finance and into production. i.e. when RES has been de-risked. Now, you have a possible answer!