The way i see it there is a big problem with that strategy...

The way i see it there is a big problem with that strategy Mickey. This is no Flinders Mines. Apart from Todd that share register was dominated by small holders. The Peel register is dominated by experienced industry players with large stakes.

There are essentially 2 groups who between them control more than 45% of the Peel scrip. J. Pitt & associates & his mates with more than 32%. Management with more than 15%. Amongst that group are 3 geologists. Now do you seriously think for a minute that those guys are going to sell out their holdings at anything resembling a cheap price. Especially when the drilling has only just really started.

The large holders account for around 70% of the stock. So there is probably only around 30% of the stock that is possibly available. Then you have to take into account the strong loyalty following that Pitt has amongst people who have followed him for years. (Tried buying Hampton Hill shares lately. Despite there now being 300M on issue very few are ever traded. Tightly held doesn't even begin to describe that register. )


Peel is a rapidly unfolding situation. Value is being added by the day. SBM may have just missed the boat by taking their time with this investment. But there is little they can do IMO. A bid by them now would be seen for what it is opportunistic.

So i would say that without the nod of approval from Pitt & management that SBM may at best be able to increase their holding to 30%. Then what would that achieve. They may get a seat on the board. But they could never expect to gain control. Not unless they delivered a knockout bid that in the opinion of the largest holders reflected present & future value.