Marubeni / Shared Mill+InfrastructureHello pancake,
I agree, a shared mill and some shared infrastructure make a lot of sense. Maybe also some shared administration. And it would make sense to have Martin Quick as head of the operation. As shareholder of both companies I want to see maximum profitability.
If Marubeni buys into both companies (and it looks like this at the moment), Marubeni probably also wants to see some shared synergies. Maybe Marubeni brings Western Prospector back on the table for joint ventures talks that have alreeady taken place last year. Maybe Marubeni offers a buy-out to Western (Western had already a buy-out aranged last year). That would be even better to get one entity and one operation.
I guess there are many talks in the background at the moment and a good news on the horizon, hopefully an investment agreement, a joint-venture agreement, a forward sales contract, some financing.
If Marubeni realy wants start production by 2012, this all has to be delivered during 2009 (you can easily derive this from Kahn and Western project plan). Original start of production was planned for 2011 and the investment agreement in 2008. So we are 1 year behind the plan.
2009 will be realy an interessting year for both Khan and Western.