xmen buy cloncurry cu project from exs $175m, page-15

Completely agree Hoots.

Lets face it, we all know that Xstrata and all the other big boys acquiring the juniors don't buy things at the price they value it at. If they paid a price even close to its value then there is no profit in it for them. They buy things dirt cheap from those that are so far from developing the resource themselves that they simply cannot realise the value for shareholders.

In this case they would have had to start discussions with Xstrata anyway and Xstrata would have simply said something like "if it makes sense to use our processing facilities then why don't you just sell us the resource and we will manage the entire thing. Without us you have no way forward". What else were they going to do ? Hardly a good bargaining position for EXS so they take a bucket load of cash and move on to do it all again with other prospects, except this time with more money behind them (before they hand it back to shareholders that is).

CDU is in a completely different situation as you say. Selling out now simply isn't necessary and although you can make a tidy profit exploring and selling out we all know that the big money is made when mining starts. Xstrata certainly knows this which is why they are buying it in the first place.

No idea why people keep trying to compare apples with oranges as it just looks like sour grapes.