3 Reasons WhyI hope we do not get an offer anytime soon...firstly we are not for sale...but we could get an offer?
The offer would have to get past: Shareholders knowing the real value of AAA in 2 to 3 years and 10 to 20 times our current share price, BHP telling us that they want the basin...but want 5 m tons per year proven up first, and thirdly, that an offer does not force our "white knight" to come out and squash the offer with their pre-emptive rights...
Dont ever think that the IFC (world bank) dont have the resources to put their money where their mouth is...
Lots of volume...yes...for sale...NO....offer coming...WHO KNOWS....why its not likely...read on...
BHP requires assurance the Dallol basin contains at least 5mm tpy ofproduct before attempt to consolidate the Dallol area (South Boulder et al) -BHP has 17m sq km of property under lease; Nice to see that BHP is going to wait until the juniors can prove up 5 m tons of product per year...that gives AAA time to get financing, off-take agreement and BFS completed
CEO of WPX: Pat: . My biggest fear is that we’re going to get people out there realizing how great this project is and they’re going to try and buy it from us or from the market…..But they forget that if they were to hold on and stick around till we’re valued on earnings the stock would be valued at 10 or 20 times what it trades today.
www.scotiacapital.com/English/bns_econ/bnscomod.pdf Nov 24th, 2011
2 to 3 years top pick – Allana Potash:
No other junior has the financial backing that Allana has and almost guarantees that they will be completing a mine in 2 to 3 years time.I just don't see them being take out before they start production given the investment from the World Bank. By the time they start production (2 to 3 years from now), Allana will be worth North of $1.5 billion meaning we should see their share price between $8 to $10. After they start production, they can then sell themselves to BHP or someone else for north of $15 per share (approximately $4 billion) in 4 years time if they choose to.
And do not forget that the IFC has the right to increase its position "if" an outside offer comes in to take AAA out....we may have our "white knight"…if required!
In connection with the Offering, IFC shall have certain rights, including without limitation, information, policy and pre-emptive rights. -The World Bank, an agency of the UN, has the mandate to help development in impoverished countries, and should the buyout entity's goal be not compatible with the mandate, it could exercise its preemptive rights.