"Guelb el Aouj Iron Ore Project – 50% • UBS Investment Bank in London has been appointed to co-ordinate the sale of a strategic 51% stake in the Guelb el Aouj Project. Despite the difficult prevailing market circumstances, progress during the quarter has been very encouraging with significant interest reconfirmed by global mining, steel, and investment companies. The UBS sale process has now entered into the second phase with a select group of companies. Indicative bids will be received from these companies during Q2/09, from which a short list will then be selected to enter into the final bid phase due to be completed in Q3/09."
You can see that SPH should now be approaching the final stage of the bidding process for 51% of their Guelb el Aouj Iron Ore Project. Whilst assets are cheap there are many big players looking to position themselves in the market for the years ahead. Sphere haven't announced any names yet but I'm sure that the likes of Xstrata wouldn't be out of place in there. Put Minmetals in the mix and the possibility of assets being bought outright and it could lead to a very interesting few months. Sphere need some cash to go to the stage but with almost $19m in cash at the end of April they are not desperate and hold a strong position.
SPH Price at posting:
68.5¢ Sentiment: Buy Disclosure: Held
