RE: RE: CORPORATE PRESENTATION UPDATEOne thing I found interesting, page 19...... "Commissioning 18 months from finance" so basically a year and a half from having funding in place they would be producing. That would mean project funding in place by late 2009 would mean production around the middle of 2011. I think they are going to need some sort of JV partner to be able secure debt financing, or have the partner provide the loan.
I see Xstrata just raised $5.9 Billion in a rights offering..... $2 Billion came from Glencore and then goes right back to them with Xstrata buying one of their coal properties. The financing increases Xstrata's shares by 2/3rds. Glencore is taking their portion of the placement to remain 35% owners of Xstrata........
I see Xstrata as one of the more probably partners in the project...... If LGO can somehow get some of that remaining interest from Vale ODB then they would become a takeover target. If they can't increase their direct ownership to over 50% then a takeover is unlikely.
lurk