Developing phosphate interests in the Georgina Basin, Queensland, Australia

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Message: Re: Are we tilting at windmills?
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Oct 05, 2010 06:44PM

Anyone see this recent article on Gutnick?

http://www.theaustralian.com.au/business/mining-energy/gutnick-chases-rare-earths/story-e6frg9ex-1225934777011

I still say that theres a very likely chance of a buyout. With gold and rare earth prices starting to resemble the late 90's internet bubble, Joe would have to be crazy not to step in line and pursue other startup mining ventures. I don't see it likely that he will take a pass and focus on managing production startup ...with gold prices looking up towards $1,400! Unfortunately if there is a buyout, its a premium over today's price so we're stuck with a 25% min to 75% max premium to the recent mid .70 average. That is unless price moves up dramatically in the near future.

Thats just one very likely possibility. With a stock like this there no way to contain the news so we should get hints towards the end of the year. Like in Quantum, with price increase days before announcement. The big very likely risk is yet again more delays and nothing happneds besides dilution. It could be that with nothin on the near horizon, the price starts to slowly bleed until next year. We should also consider the possibility of a downturn in Chinese demand and deflation beating out the inflation hawks like me. Just thinking outloud.

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