"It shows that xstrata believes this resource at least has value "
LOL ! AU76 Yep they see Value alright ! Value for Xstrata - Once again the Xmen have done what the Xmen do best let the juniors do all the hard work proving up the resource, putting the native title, EIS and M.L applications to bed then swallow them up at bargain basement prices knowing full well that its almost impossible for the juniors to fund a mine without massive dilution that results in little return to shareholders once the first sod is turned.
Well I said almost impossible, but maybe just maybe Cudeco can pull it off . OZL got Prominent Hill up and running from scratch and I reckon CDU will also.
I dont think the sale of CCP by Exco is rocket Science , even their EIS application flagged putting the ore through Ernest Henry as their preferred option to a stand alone plant.
Xstrata moved on Exco because they knew the board would back them even if they only paid an O.K price. The Xmen also knew there was no way Wayno would sell for single figures and that he probably could convince 51% of shareholders not to sell cheaply. So Xstrata simply moved on to the easy pickings.
They can always have a go at CDU further down the track if at some stage they can see " Value " for them that Wayno would accept.
CDU Price at posting:
$3.09 Sentiment: Buy Disclosure: Held
