A well balanced analysis Mick. Regardless of all the criticism of management on this forum (and I agree that some of it is certainly justified as Rob Tyson has overpromised and under-delivered in terms of delivering the MB study), there is no doubt that the current strategy is correct - i.e. drill SN and WT aggressively to establish a maiden resource. Until we have this resource, no one knows exactly what we are dealing with. Depending on the size and attributes of the resource, it will either be (i) game on with takeover and/or JV interest from a number of potential suitors as the project is progressed towards development or (ii) if the resource disappoints it will be back to the drawing board for more work and drilling (and MB will likely re-emerge as a more important development project).
I'm hopeful that the outcome will be (i) however even in this event patience may still be required - often these takeovers etc take quite some time to play out - for example MOD has just received takeover bid, they are just months away from completing their DFS on the T3 project - compare this to PEX who are drilling the maiden resource.
PEX Price at posting:
42.5¢ Sentiment: Buy Disclosure: Held
(20min delay)
