Peter Grandich on NDM news releaseAfter the close, NDM released its Preliminary Assessment Technical Report. It’s critical to understand and appreciate this is the first hardcore assessment of what NDM has since 2004. Now, any and all interested parties have in-depth data to chew on.
NDM’s CEO said in two recent public interviews that it was NDM’s plan to first complete the process of gathering the data and issued this report. He then suggested more than once that the company would go up for sale and/or be considered a takeover target.
It may have taken longer then first thought (and a world financial crisis didn’t help) but I believe this news is the watershed event that needed to take place for a process to begin for inevitable sale of the company. I had stated before NDM came a client again that my personal target was $25. Given how much metal prices have increased since then, I think that number is substantially too low.
Yes, there’s an environmental concern that one must take into consideration but I believe that very concern and lack of an updated assessment had kept NDM’s share price depressed.
It’s obviously a big plus that this data came out before two of the biggest institutional and industry shows in the world take place the next two weeks (BMO Conference and PDAC). Simply put, I find it very hard to dismiss a belief that most of the major mining companies in the world shall not only feel they must have what NDM has, but how do they live with one of their competitors ending up with it? And with Oyu Tolgoi all but out now as a takeover target, NDM is without question the largest prize for a major or majors to grab.
In my book – GAME ON!