Marwoode, I mentioned my preferred stance during the SBM takover proposal in my posts at the time which was "to wait things out".
I stated that Catalpa should go it alone for another 6 months so we get 2 good quarterly reports into the market place after the series of problems encountered at Edna May in the past 6 months. Presently I now know that I was dead right in having those views as it was reported since then that Edna May poured over 8,000oz in May. Bruce also mentioned in his Catalpa/Conquest BRR merger interview, that June was going the same way.
At the end of this month we'll have the June quarterly and it will look good. The next 2 will be even better. The open pit grades are now going up and the plant is now performing well and improvements are being made to ramp up to 3.2mtpa by the end of this year. Early next year we'll start getting into the high grade stuff!!!
This time next year we would have been looking at a discounted price of $2.50 or more - if we were going it alone.
Unfortunately that's not going to happen!!! The SBM proposal was a joke and they won't counter offer now. If they did counter offer for instance $2.20 then yes I would seriously consider the offer in my current circumstances.
CAH Price at posting:
$1.42 Sentiment: Hold Disclosure: Held
