#MTR are demonstrating that their full focus should be on the the JV with #MOD in Botswana.
They are spinning out their Thai venture in a forthcoming IPO and have stated they intend to divest from the asset trading venture (at a significant profit, but when the time is right in order to keep an orderly market) so they can concentrate on Botswana alone.
imho this is a highly unusual strategy as most companies the size of #MTR would have multiple projects to hedge against poor performance of any one project.
The only exception to this stategy would be if a company was sure they had found a project that was 100% going to make serious returns, returns that justified specializing in a single project.
They announced this before the latest ip results and before the airborn EM programme was announced.
This tells me they have confidence in the profitability of T3 (zones one and two) alone, but anticipate good news from some of the other targets in Bots too.
Current prices mean any investor is now buying in below sophisticated players such as Sprott International and Rick Rule's personal fund.
Rick Rule taking a 100m stake is massive, imho there's no bigger signal.
The news that the requirement for EIA has been reduced to an EMP
shows the lights are green to make more discoveries.
imho #MOD Investors are currently facing a genuine no-brainer investment.
With 70% of the JV and significant exploration licences of their own #MOD has every chance of making investors serious returns.
At the base of the resource cycle from a company that has proved it can race to a scoping study in record time and with minimal costs what's not to like?
The signs are there for sophisticated investors to get on board before a major wishes to join or makes an offer.
dyor of course, but I doubt that it will take you long to verify.
atb
JS
MOD Price at posting:
5.5¢ Sentiment: None Disclosure: Held
