The why and the hows. The why
Mount Kellet is in the business to turn a profit. Just like Baja Mining and just like you and I. This is the end game for all of us.The rules we each play by may differ considerably. However, the bottom line is to make money.
The hows
Which leads me to the issue of how does Mount Kellet intend to make its profit here. The only opinion I have formed is that the rules adopted by Mount Kellitt may be characterized as "overtly aggressive". This still begs the question: what is their end game? What is the "how"? I do not know.
When they say that they do not intend to launch a take-over of Baja, this might only mean that they do not intend to exceed their own 19.9% position. It does not exclude collaboration with Xstrata to monopolize the world's cobalt market. (Xstrata produced 617 tonnes of cobalt in the the first half of 2011. Boleo's considerable cobalt concentrate could be shipped through the Panama Canal to the Xstrata Nikkelverk refinery in Norway.) Copper may not be the "how". Cobalt might be just as important. Oh my goodness sake, just look at the cobalt mess in the Democratic Republic of the Congo -- Tenke Mining Corp & Gecamines. Talk about "country risk" in spades.
Or is the "how" directed to obtaining inside knowledge (through membership on the Baja's board of diretors) on the potential development of by-products zinc sulfate and manganese? I do not know. What other BOD developments might be of importance to Mount Kellett, if not inside information regarding zinc and manganese?
There is one "how" which I have rulled out on the basis of sheer gut instinct. That is Mount Kellett as a passive investor which simply acquired its 67,421,111 Baja shares (and wants another 33,700,000 Baja shares) for investment purpose. How in the world would they sell this line to other Baja institutional shareholders? Who would buy it? Only TraderPaul would buy it. And that, my friends would be tautological.
So I return to the unanswered question: how? How does Mount Kellett intend to profit from the course it is steering? These guys are too smart to put their clients' money at risk by embarking on a contest of who has the most testosterone. Perhaps we should be looking for their "partners". Perhaps we should be looking at cobalt. Perhaps we should be looking at the value of specific insider knowledge (zinc and manganese).
Perhaps, perhaps and perhaps. Who knows? I don't know. I bet TraderPaul knows. But he will not know about this post because he has me on ignore!
Best regards,
Doug.