Just adding my speculation….probably the pre-cursor to a takeover and almost certainly initiated by Tremont. Sorry for being a bit long winded – but …..
I have been trying to spur the interest of shareholders for months on this topic – which was always going to happen. If it is a takeover (why wouldn’t it be??), I only hope you fellow shareholders don’t just become apathetic by rolling over in a meek “un-ozzie like” surrender. We do have options.
I can’t understand why anyone would accept anything below $1 per shareminimum. IMO, the ONLY thing that gives a takeover merchant a reason to value the takeover offer being less than “fair” is the historic SP – which seems to have been manipulated down to unrealistically low levels – specifically for this purpose!
Everything else about what Panda Hill has to offer the players in the niobium market is so positive (& the Board has consistently reiterated this to the market) makes the SP screamingly undervalued.
Assuming it is a takeover offer, and assuming it is an “unfair” offer - there are two major things to keep in mind…….there will be an opportunity to object to the takeover AND there is the Board’s recommendation. We do not just have to lie down and accept it.
IMO, both of these things are vital to maximising the value of your investment in CXX. I think there is an argument against accepting the manipulated historic SP as a valid part of the SP valuation methodology. I am certain the takeover merchant will use the historic SP to justify a low offer.
Think about it – after all the “beautifully positive & exciting” information they have released to the market and the sales success of other niobium mines – not to mention Craig’s comments about how failed previous bidders should be lining up to buy CXX….why would the Board now recommend we accept a takeover for anything but a “fair” price?????
Can you see Tremont mining Panda Hill?? Not likely! Once they have control – they will sell to someone (who is probably already waiting in the wings) and bank a huge profit.
Let’s say Panda Hill sells for USD$500m – or AUD$665m. Possible right?? CXX’s shareholders would be paid out at $AUD$2.02 per share!!!
We shareholders have been holding a lot of risk for quite some time now. Considering that - and the rest of the above, I do not think it is fair for any takeover merchant to make a low ball offer.
I don’t know about others, but if any takeover offers don’t reach at least say, $1.00 to $1.20 per share then I will be objecting to the ASIC and I reckon I can put up a decent argument to support my stance.
I don’t mind leaving some money on the table for a takeover merchant, but I’m going to fight against being financially raped!! I hope there are other shareholders that share my intent/view.
(Offtakes and Financing must now be confirmed - who would move to take control otherwise?)
Happy days everyone!!
CXX Price at posting:
23.0¢ Sentiment: Hold Disclosure: Held
