They have plenty of cash and looking for high grade, advanced copper projects.
Any bid by say CSA might bring OZL (or other interested parties) out into the open
One of the saving graces against a low-ball bid for YTC is that the Chinese and management own around 25% of the stock. I doubt whether they would cave in to such a bid if it was made - particulalry given the potential upside of YTC's projects.
Further, the recent capital raising at 57 cents should set a bit of a floor on the share price and the instos who particpate in the capital raising would not be selling out without a reasonable premium being paid.
I must say however that I am surprised at the extent of the sell-off with YTC. They will have over $30 million in cash, a major position in Taronga tin and lots of drill results on the way. Plus there is the anticipation of their first resource estimate.
All good in my view and I think (and hope) the nervous nellies who are selling now will regret their decision in the mid-term.
YTC Price at posting:
58.0¢ Sentiment: Buy Disclosure: Held
