deal or no deal....peppie??, page-3

deb,

I'm going to decline, partly because if the "war office" worked out IDM was 10c, I will be working nightshift at Woolworths and won't be able to attend.

On a serious note (and no offence is taken with your post), europe is worrying all investors and it's not helping our market, specifically the smaller end who are always the first to be thrown out in uncertain times.

Will it get worse? will Germany and the IMF fix these issues? well, it can't be band-aided like previous fixes, so it playing out this way might actually help the market in the long term.

Just with IDM.
It should be noted that 50% of IDM's Spherichrome production profile will be supplying foundries within the U.S., Mexico and to a lesser extent Canada with a majority of that used for the supply of parts to the auto makers. If the auto industry is moving forward, I don't see too many issues.

The entire production of the other three products, High Iron Ilmenite, Zircon and Garnet are being sold to U.S. companies, most of that to be sold into the U.S market.

Remember, South Africa is a long way away from the U.S. and it's still the biggest single market, not Europe. The supply and quality problems coming out of South Africa are taking their toll and if you look into Amcol's quarterly reports you will see they have committed their entire production of Hevi-sand for 2012. Zircon supply is just a problem in general.

As for them being "a commodity", well technically you could say they are. But in the real world, Spherichrome isn't, High Iron Ilmenite has never been produced like this, their Zircon could have been sold 20 times over and garnet is not sold through an open market.

As for it going to 10c, well I look well beyond a short term horizon and market jitters by studying the research that I have, this still indicates to me that it has a very bright and long future in a space that clearly has very few competitors. I'm also impressed with the management team they have, specifically the former Iluka team they have compiled and the former brains behind Andean and Jabiru becoming chairman (Barry Bolitho).

My last point.
The CEO wrote a cheque for $700k @ 20c in a last rights issue, I'm sure he's confident of the company's future.

These are just my thoughts and people should do their own research.

Pep