Their presentation today again reaffirms that solid inroads are being made at Hawsons. It seems that what we were crying out for during the first half of the year is finally coming to fruition. I strongly believe that there are only two plausible outcomes come May 2012. Either BMG miraculously coughs up the $25M, or a 3rd party comes in and wipes them off the table (for $13M?); the later being more likely in my opinion. Nick wouldn't have hinted at this in the most recent BRR if it wasn't on the cards.
Yes, we can all sit here and show our grief at seeing such a valuable asset in Hughenden being handed away for next to nothing, or we can look ahead to what CAP is now all about.
The big question in my eyes is: can CAP management make up for the dissapointment in selling the coal away for such small upfront payment? They will do so in one of three ways. Indirectly get the Hawsons JV back in tact, hit some good grades at Koonenberry, or get together a successful scope for Euriowie/YG.
If you don't think so, you sell. If you think they stand a chance, then you hold on for the ride. Regardless, with a present EV of $8M, it would all have to go horribly wrong to lose out further from these prices!!
CAP Price at posting:
19.8¢ Sentiment: Hold Disclosure: Held
