RE: RE: China stimulus part 3 what`s in for SGQ to Oldnicnor and Bmeister 2
McKinsley rep- Google it
SGQ timeframe - too many variables but now skewed towards good surprises - months ,I guess
1. -- The benefits = stocks up, of 2009 China stimulus went in order from
big cos to juniors/ explorers , who got it last .
While bigger cos jumped now up to 20% in 1 day the small ones not so much
= there is more time in them to react / position oneself at lower entry price.
2-- Commie attacks on IVN /RIO ( likely unsuccesfull but you never know )
may make them rethink pace/ way of investment in OT .
IVN to spread the risk may use some of it's $ +2 b cash to prompt SGQ instead.
They appointed new SGQ Deputy Chairman who will be directly involved in
managing SGQ -=Alex sidetracked or got reinforcement ?
3--RIO may want to separate IVN /OT risk from IVN other projects .
So, they may restructure IVN = leaving it with only OT and move SGQ
and IVN AU into RIO's appropirate divisions
Better orgaizational clarity/reporting ,use of resources / management,
better focus / efficiency ( Cu guys running coal co doesn't make sense ),
Intergated marketing, sharing /leveraging WAST list of RIO's customers
Intergrated developmet ,capex .
IE price negotiations with big RIO and small SGQ makes a difference .
IN ANY CASE, SGQ IS BETTER OFF NOW - UNDER RIO - THAN BEFORE.
4-- Sale of SGQ was made before RIO took over .
RIO said , they will review that sale and make decission
Well, unfolding events helped them in that decission.
It would be nice to get $ 8.5 now= 30% above pre bid price
It will be nicer to get $ 17 later =850% abowe price now
Though RIO can still sell SGQ to someone acceptable by apparatchicks.
Including Mongolian co . IE the billionaire MAC guy ( second richest in M )
is sharing same seams with SGQ
They are so close that their pits encroach on each other territory
Turning 3 existing , next to each other pits (MAK 1 , SGQ 2 )
into 1 giganting pit makes sense and increases A LOT the recovery
Plus commies in 7- th heaven - happy .
Controversly ,RIO can buy MAC and intergrate it with SGQ.
The guy has plenty of other projects from Au ,Cu ,coal to hotels
and depending how extended he is and his priorities , he may need some cash
5. For years and years RIO held stake in Whiteheaven Coal - AU
Same as in SGQ now
Then suddenly last Y RIO decided to buy the rest of WH for
$ 20 SGQ share equivalent based on price per 1 t resource
Well, that option may be also applicable to 42% SGQ , RIO don't own
(not $ 20 - given the differences but $ 10 would be just right )
Giving you RIO shares for SGQ shares will cost RIO almost noyhing.
Especially when RIO is on a mission to dismantle Friedland.s legacy.
And is underweight in met coal holdings .
6 Official statements - " we are going now to help to develop
= expand this "great asset"
Seems , as the simplest way = just help ( in various ways , incl. money and expertise ) to implement existing plan /PFS with 15mt ROM target production
THAT's A TRIPLE !!! geeesus
So ,options aplenty
.