HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"

NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)

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Message: The Xstrata Riddle

You make a good point about timing. No, I do not expect money to be raised tomorrow. We do not need any today. As well, there are becoming some other alternatives, such as partial asset sales (eg cr), to raise cash without dilution.

But if the share price continues to waffle downward or sideways on what we know now, why would we expect the contolling interests to wait until we were down to our last few millions ? Unless they believe that they will not be the source to pony up the next funds when required, why would they not do it when the price is low ? I agree my comment about an entry point for a long holder may be somewhat intuitive, but it is also trying to be objective with investment.

We've had some good comments on Xta's absence. Their cap is 6-7 times CLF and their dilution to take FWR and NOT combined at say $1billion Cdn would have been only around 2% in an all-stock deal allowing for the existing cash balances. Yes, I believe they have a lot on their plate . But at a time when VALE was out of the box , and no attraction from the competition bureau at this stage of development, I still say, "If not Xta now, then who and when?" We can smack away at CLF all we want, but they were the only player for a key asset despite their small size. Sherritt and and Sumitomo have spent a gazillion on Ambatovy, but no sign of them or Teck. The Chinese sovereigns do not want to be direct developers/operators, direct investment by them seems unlikely. CLF itself seems to be more motivated to bulk,above ground/open pit .

Waiting is not a lot of fun, but it looks like more waiting is in order until the proven resource is more compelling to attract a major. And that poses the chicken and egg question on share price and dilution.

I am generally liking the juniors a lot more, but Pinetree seems to have had the pick of the litter, including some NOT, so I am staying with PNP currently.

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