Yo're assuming he has the money and that he won't cut and run. I would be very careful; the iron ore market is soft with BHP and RIO finally admitting that their Fe ambitions are too extreme - not that they put it in clear terms like that.
I would have thought any party looking at this would say that Ren was given shares at 4.5c an inferred ton. That may guide them to any offer if indeed one arrives. In this climate that is possible, but not highly probable.
The current 61m cap doesn't look absurd but does imply a lot of inferred being upgraded to indicated. For example if a buyer only wanted to pay 4.5c - 5c for the 488 inferred and had the whip hand now that conditions are softer, the market value would be 20-25m, not 60.
Anyone geared might think twice about this one.
SHD Price at posting:
8.9¢ Sentiment: None Disclosure: Not Held
