If majors aren't interested in ROF yet, could it part of the strategy for a smaller sized company like Cliffs to get involved with the prospect of being bought by or sold to a Major? Who would be an interested party to compete with Cliffs during this exploration period? Perhaps they might be of similar size to Cliffs or a government who can afford risk.
This question implies a few things, 1) Cliffs is bluffing for building infrastructure, 2) infrastructure is the hook for the sale to a major, 3) they are dead serious and praying majors don't want them.
My earlier post discussed a buyer considering a hostile bid for Fancamp to be cheaper than buying one of our properties. It makes one reevaluate the value of our properties. For example, one could ignore the insitu value of Magpie as it is as costly as we shareholders are willing to be bought out for.Magpie may be able to be sold for 500mil and our half would be $5/share. But the suitor could seduce us for $4/share hostile bid for our half of Magpie or $200mil and at the same time acquire all the rest of our properties.
One could say it’s too soon to estimate what we’d sell out for. $4, $5, $10? We don’t know till we have results from drilling. However, I’d argue that metallurgical results won't change our perceived value of Magpie. It will still be undersold as no one will buy it for the insitu value anyway. Again, it would be cheaper to make a hostile bid.
The most important thing our team needs to do is sell our current properties and increase our SP by finding ore before a hostile bid.
For now, I’ll consider a $5 bid.
Also, earlier Glorieux posted that the big boys are on holidays, so the CEO’s he spoke with have no intentions of putting great news. Who are these big boys that local CEO's would want to impress with NR, and isn’t that a good time to snatch a sale with less competition while the cats are away if you were an interested buyer.
-sg
If not a Major than who/whom is Cliff’s competition? (any gramarians out there want to help me?)
http://agoracom.com/ir/Noront/forums/discussion/topics/433265-question-to-hoov-and-glorieux/messages/1417023#message
