Post by
Bushwacker3 on Mar 15, 2019 2:43pm
RISK/REWARD CONFLICTS
After so many years waiting I've given up hope on the Rio takeout. The open pit is quite profitable but the UG costs far exceeds it and keeps mounting. Rio imho has been spooked by that Alcan and Simandu debacles. Yeah they got some extra cash also from the Grassberg withdrawal but imho the best options are to remove all the prevailing roadblocks.that always seem to hinder progress.
1. Rio needs to overcome GOM resistance by sweetening the offer for their 34%. Eliminate the current IA and rewrite a new working agreement based on taxes , royalties, licences/permits ,etc.
2. Not go it alone and find a strong partner (preferably a Chinese SOE for the China customers) to help mitigate any sovereign risks.
3. Consolidate all adjacent and joint venture properties to be included in overall development.
4. Get an early start on the new power plant.
5. Get the GOM off their backs by helping them have freedom from eternal financial loans and start receiving positive cashflows to improve their economic development.
6. Hopefully this nightmare will end sometime and perhaps help regain my sanity, GLTA.
Comment by
aldarion8484 on Mar 15, 2019 3:23pm
Alot of good recommdations there.
Comment by
TRQforever on Mar 15, 2019 4:54pm
crazy stock, Volume went crazy late, now afer hours. Hmmm