Happy,

I think you are joking when you used BOA (as in boa constrictor which some people would raise as a pet until it gets too big) for the name of the Chinese steel company, since the real name is BAO steel (that's how they spell their name).

That company is sitting around waiting for the right moment to strike. As you have indicated, BAO currently has 9.9% of NOT with an option to increase to ~20%, since May 2012 (why didn't they do it, and allow the investment company to take the majority stake in NOT?). It's in the steel business, hence Ni, Chromite and Fe are the three basic components it would want to get, plus whatever else in the ore such as Titanium and Vanadium. BAO's NOT holding is sitting next door to FNC property in the RoF, so BAO (Mr. Lin sits on NOT BoD) knows what's FNC has at RoF... and beyond (e.g. the Fe stuff in Quebec). This is a perfect backdoor for getting the Fe ore (in the billions tonnes, one of the largest ore bodies in the world as FNC speaks of Magpie). Now, there is also CHM (FNC Siamese twin). BAO steel is a gorilla in the steel business, not only in China but also in the world, and the combined market cap of FNC and CHM of (only) $145M is chump change for them to swallow whole in one gulp.

The current sitution is troubling, at least for me: BAO steel can strike anytime. The targets are just too attractive. The question is why not now, while the companies are dirt cheap. Perhaps, this is why Peter wants to make FNC look small and fly it below the radar. But the constrictor knows where the mouse is.

One option for BAO would be to do it now before other companies in the region make a move. The other option would be for BAO steel to wait for CLF to swallow FNC (and CHM) first, then it will make a move on CLF (or perhaps the two companies already have a deal on who to do what) and get the control of all the Ni and chromite, plus PMG, in the RoF and lots of Fe in Quebec. It's quite often that a Chinese company would want somebody else to run the company for them (too much headaches running a company). They just want the control of the supply of raw material. Besides, they want to fly below the radar themselves (too many national issues they must face if they take over the entire company, Canadian or American).

So many options when money is not an issue!

goldhunter