Not sure of the merits of Baosteel taking out IOH. Lets say they come in with a strong cash offer of $1.87 ($300 mil), they still would need to stump up another $800 mil to get to 8mtpa. While I know there size, that's another $1.1 BIL on top of the AQA deal.
How about they just do a deal with BCI (once BCI has BS) and stump up (say) $400 mil for a JV to mine the whole ore body of approx 400+ mt at maybe an increased rate of 10-15mtpa (LoM 20+ years?). Surly it cant cost that much more (if any) to mine the whole body.
Just a thought.
Disclosure: The BCI T/O has change my investment approach to my IOH stock holdings, IMHO I think its going to be a good divy play, a bit below the past few years of around $0.30ps. I think it could realistically be around $0.20ps but still a very good return. Just my opinion of course.
DYOR
Enter Baosteel ?, page-16
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