Vale JVHaving held CD since 2000, I was not at all surprised that we had to concede more of the property than liked or expected. While the markets are bad now, the fact remains that we have no money, it would be difficult to raise more in these difficult times and we can't expect Fipke to foot the bill each time.
I suspect that Yemen was also putting pressure on CD to do something and may well have turned some or all of the property to Vale or another company.
The fact that the shareprice didn't rise in spite of the unrealistic predictions is also not a surprise. This JV was already kown in the marketplace and yet we didn't move. Maybe some traders (and pumpers) thought they could make a few extra pennies but no luck for them. personally, I had expected a rise to 15 or 20 cents but so be it.
Now we must all relax and wait for drill results, etc. I don't think the SP will drop further but rather expect a slow rise over the next year. If the assays are good we will come out OK in the long term.
In 2000, the FalconBridge got the price to about a dollar but that was back then and now we have more shares outstanding in a poor market and so the low SP. The politics in the area and worldwide also doesn/t help.
Even Vale is not money rich at this point.
My opinion is that the longterm will be profitable to patient investors here.