Just some speculative thoughts about the takeover rumor
hey everyone, been a while. I have some thoughts to share, let me know what you think: In the last news release, they said "Upon selecting the preferred bidder, a period of exclusivity will be entered in to with this company". My understanding is that this would preclude management from entertaining any other offers from any other company. If there is a takeover bid/offer, my suspicion is that management is putting off the offtake bidders while they seek to solidify any takeover offer to the greatest extent possible. I feel they are likely scared of losing their offtake bidders if the bidders were to catch credible wind of the simultaneous takeover negotiations, and as such they could be trying to keep everyone in the dark. This would be relatively easy to do under the guise of due diligence, as they mentioned in that last news release: "Given the complexity of these bids, extensive investment modeling is currently being conducted...".. so in short, I think there is a possibility that they are negotiating with an outright buyer, and don't want to lose the offtake bidders in case that falls through. They won't release any further news as it would take away their current excuse for delay and could also jeopardize their ability to entertain that buyer.. this could be the explanation for why we haven't heard anything yet, as they would have to keep EVERYONE in the dark for it to work.. Final thought is PURE speculation, but I think ArcelorMittal would be a perfect buyer for the project, as it could act as an expansion to their existing operating mine 2kms away.. I don't think they would even have to undergo any additional construction to start mining the land. This means that they would be able to capitalize on the high iron ore prices RIGHT NOW, and would be able to extract significant value from the project immediately. I could be wrong about a few things there, let me know what you think! (also: Yes they would have to complete the land transfer and environmental assessment and update the feasibility study but all that is already underway on our side and could likely be pushed through quickly under the right circumstances)