GREY:AQARF - Post by User
Comment by
yoda2on May 04, 2012 1:51pm
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Post# 19872591
RE: RE: RE: chin up RISKS of HBM
RE: RE: RE: chin up RISKS of HBM I have not been a SH for a long. And I see the big benefits of having HBM as a JV partner with big bucks, lots of expertise and an interest in buying the eventual output. At the sametime I have been lead to believe there are possible risks of being with HBM including:
they would control the time line (if they want to go slowly they go slowly)
They would control the info and could arrange news releases to suit their purposes,
they may have no interest in a speedy development of the ore body if it does not fit with their planned need for the ore as feed to their mills,
Once they have proven a certain level of found resources they may delay searching for additional resources until they see a need for more resources in their long term production plan,
they may have market power over the share price and could keep the price down so they can buy 100% at a low ball offer,
Potential buyers of AQA may not find it to be an attractive acquisition candidate because they would have to deal with HBM,
there may be concern that once into production, HBM will fiddle with the accounting to reduce AQA's share of profits(I am not sure but someone may have recently sued HBM, for this CAA??) .
There may be other reasons. I do not know. This concern does not seem to be enough to offset the high potential of AQA.,