GREY:LBEFF - Post by User
Post by
doingthejobon Jul 13, 2010 10:08pm
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Post# 17267300
Millwright & LBE shareholders, are you blind?
Millwright & LBE shareholders, are you blind?JJ ownes 51% of LBE. JJ is guaranteed first right of refusal on all NI concentrates. JJ will use its 51% control to ensure that any profits,if and when the debt is retired, are going to be used to establish new NI reserves. Those NI reserves, if discovered, are also subject to the first right of refusal by JJ. This cycle will continue until every pound of NI on the LBE properties are extracted for JJ or LBE runs out of money. From JJ's perspective, this is a cheap buy-in to guarantee a NI supply line for 5-6 years without any additional discoveries. However, in this scenario, minority LBE shareholders will NEVER see a penny. This is why, regardless of retiring the debt, LBE will never yield any return for minority shareholders. JohnEStrom and the market have sized this POS accurately.