We could have waited about 55 days, allowed the FMG deadline to lapse and promptly cleared the air with a similar announcement. Thus keeping $4 mill in hand.
That's over $70K per day for IOH whilst waiting... So it's some expensive clear air that we are breathing right now.
Did management terminate the FMG agreement early to simply avoid it lapsing and thus avoiding a "left on the shelf" impression to the market?
They can now move on and negotiate with others in a way that appears proactive and strategic rather than simply having been passed over by FMG and reacting to the news. It could be that this is simply a move to allow the company (and the project) to be marketed more effectively in the near term.
IOH Price at posting:
82.0¢ Sentiment: Hold Disclosure: Held
