RE:RE:Re,Re: mineral rights theinvstore wrote: Believe same.... Just to overstate the obvious.... the same solution mining technique being used. Rather than build two separate mines at a cost of +$3B each you could build a single solutoin mining plant and process all through the single plant. This is a cost savings of at least $3B+ and you get more resource for longer mine life.
Alternatively - there is also the potential to partner with Rio and have the single plant process product for both mines... basically a true partnership. If that happens and Rashtriya comes in with $1B for 40% of the mine there would be no problem in building the mine. However, the share price would suffer.
Too many possibilities..... the issue is just this. There are too many options for Western and they have the funding to stick it out. However, their leverage reduces with everyday that passes because more mines are being built as they wait.
Although the burn rate is not sustantial at this point...... who's going to wait 10 - 15 years for Western to get off the pot. ?
Its far more believable that RIO comes in.
How is Rashtriya going to come up with $1 Billion to invest in Wpx?
Their market cap is only around $400 million and they have approx $100-$150m in cash. Presumably they need a large amount of that cash balance to fund the day to day running of the business.
The other question would be, why would anyone spend $1 Billion to buy 40% of a company when the market cap of the said company is only $150m?
That is why the far more likely scenario is a buyout.