This seems to have passed somewhat unnoticed. Peter is an outstanding investor and has led Sentient to an excellent track record.
Taking this position is recognition that for Sentient (and the endowments they have attracted to Ironroad who are also important investors in Sentient's funds) this is important for their reputation, track record and ability to raise new funds.
Sentient's investment before the last was at 55c in Apr '12. My view is that they wouldn't have made that, or stepped up for this last round, without a view this is worth 3x their money in a sensible timeframe - and the projects have improved significantly since then.
What people forget is that private equity firms like Sentient start with a long term view on the price of iron ore and make their decisions based on what they think is likely to be a sensible price during the period when they intend to exit. Short term volatility does not impact their investment thesis - they create their value by selling a company producing a certain Volume at a conservative price assumption. Nothing has changed - except the likelihood of higher long term volumes and the chance of nearer term volumes from the other project have improved.
Peter coming on board formally is a good step to this heading back over $1 in my view.
Also note Peter's personal stock is worth over $1m at the current share price, not to mention the impact on his net worth of performance of the Sentient fund.
Good alignment of interest. Count me in.
Pls DYOR
IRD Price at posting:
28.8¢ Sentiment: Buy Disclosure: Held
