To maintain their place, Jinchuan need companies like Albidon to grow their outputs significantly, so although the mid-cap producer line looks like empty words and an imposible dream, they do mean it. What they lack is a credible strategy for Albidon to achieve it. It is all very well to talk about aquistions and mergers but with a market cap of $40m they ain't gonna get very far. However if the market cap were to reflect the fair value of the company rather than being exceptionally lowly rated and anchored in the current range still by a large number of loan notes convertible at 6.5c then that would be a different matter.
Why don't Jinchuan just gobble up producers themselves? they could take over Alb really cheaply by converting their notes, then making a low offer for the rest?
Answer the Chinese have a poor reputation in Africa so doing it through a nice friendly aussie compant that treats its works well (thats why the pay rise was a good move for those of you who still don't get it) will be a lot easier.
The problem is unfortunately our board do not have the first idea how to operate in the ASX environment and they desperately need to get those aussies appointed to the board then start listening to them.
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