RE: RE: RE: RE: Answer Michael Winship "I said yesterday that BW resignaton was possibly due to the fact that Fabulosa (or the board) wanted to sell Copperwood and BW would not agree."
That could be a possibility. We know Copperwood is a prime target and both Hudbay and Anglogafasta are in the market for a new copper project.
Fabulosa may have installed Winship because of his past connection with Quadra/FNX and all likely hood was involved negotiations in the KGHM acquistion of Quadra/FNX and that experience would be valuable in negotiations with KGHM again. He likely has considerable insight in to KGHM. KGHM and could also be looking at Copperwood and they are in a position to take on Copperwood.
KGHM aquired Qudra/FNX early last year. Since that acquistion, after fiscal 2012 KGHM has approximately zero debt and approximately 7 billion in assets and earnings of about $7.50 per share and had a negative cash flow of about 2 1/2 billion (likely because of the acquistion). Given their strong earning they may well have returned to being cash positive by now. One of their operations is one of the richest grade copper mines in the world in Poland.
KGHM states that the objective of their corporate strategy is to:
"Realisation of the Strategy will improve over the short term cost competitiveness of the Company. In the mid-term (up to 10 years), as a result of development of the resource base, KGHM Polska Miedz S.A. will become an international copper mining company. Over the long term, diversification into the power sector will enable KGHM Polska Miedz S.A. to become an international copper group with diversified sources of income which will protect the Company from fluctuations in copper prices."
KGHM moved in that direction with its acquistion of Quadra/FNX.