RE:RE:RE:RE:RE:Sandeep callOverall --- i'm cautiously optimistic:
Unfortunately Sandeep wasn't a part of the team though so he wasn't able to provide alot of insight into prior commitments (permitting/cash to get done, etc). He totally understood my frustration on all that --- and with prior management (Dale) bold statement way back 3 yaers ago about Rio having very little DD left, expeciting an offer for entire asset way before deadline (1st one), etc.
What Sandeep said was 9 month delay in permitting last year (still paying consultants, etc) and bascially implied (while Casino will eventually get built and permitted).....the permitting costs and timeline are a bit unknown primarly due to the size of this project --- but he is laser focused on getting that accomplished!
He also stated that Rio is a large company....and got side tracked with TRQ...and who knows....might get sidetracked in the future with another large acquistion that pushes WRN to the side...and if we don't have tension....it will get further delayed. As many of you have already stated --- whats' the reason Rio needs to act now. Why not just wait for further derisking if WRN market cap increase not a concern, no known other interested party, etc.
I told him, "yeah...we've been hearing about the need for competitive tension now for 3 years".
I believe Sandeep has a 2-pronged approach to creating tension:
1) Focus on permitting - believe is that will drive market cap and potentially other interest. Mentioned currently at 15% NAV and getting thru permitting should increase it to 30%-60%. Clearly he was using NAV of FS --- not spot.
2) Get investment community on board - get more analyst coverage and get more funds buying to drive market cap to pressure Rio and others. He provided evidence with Eight Capital of his connections starting to bear fruit on this and he is going to work his as5 off to do more of this going forward.
Lastly, i commented to him "i sure hope management isn't listening to unrealistic shareholders who think that Casino is worth $2, $3 or whatever multiple BILLION and think we are going to get an unreasonable acquistion price tag on this and instead are focusing on moving this along to get into a majors hand more quickly at a win:win price tag rather than dragging this out another 5+ years!"
I should have told him....."you heard it first from the one and only Sooner....set your sights on that $6USD and bring it home already!!!!"