Haywoods revise up 73% in one WeekHello All,
Well it looks like Haywoods have had a re-think. The target of $1.50 which they published only last week has been revised upwards to $2.60.
Why?
The reason is the section on pages 4 and 5 of this report:
https://www.haywood.com/pdffiles/EXTJun52008.pdf
The section is titled "Is Extract in Play?" and it discusses what EXT holders have known for quite some time, that the wolves are circling this jewel.
When they take their first bite RIO will know that their wait-and-see time has run out. They may allow negotiations to progress but mark my words, when it is all over RIO will be the buyer.
How high will RIO go?
Well let's think about it. How much would a new processing plant cost RIO elsewhere? Maybe $600 million? How many years would it take them to build it? What is the lost revenue on that?
If RIO gains control of Extract's Rossing South deposit (which is proving to be a MONSTER) what would they neeed to do?
1) No processing plant, saving $600 million
2) Lay tracks for a few kilometres from Rossing South to their existing processing plant at Rossing - Cost maybe a few mill.
3) How soon could they be processing from Rossing South? I think you can measure it in months instead of years, what does that save them in revenue? Can we measure that in billions do you think? Before you scoff have a look at the recent spectro readings from Rossing South as well as previous results.
Good luck to you all, I hope you can get in at a reasonable price but I am holding on to the end of this so you won't get any of my shares.