Share Price is reflecting the fact that the Esperance port is...

Share Price is reflecting the fact that the Esperance port is pretty much a goer.
Watch for other members of YIPA for a move. (Though CAZ is the cheaper of the other companies)

http://yipa.com.au/doc/2012_01_20_-_$300m_Esperance_Port_Pledge_big_Yilgarn_Win.pdf

I don't know how much of the extra 10 MTPA CAZ are going to be able to secure, which CAZ are aiming for 4-5 MTPA into production.

Still it partially ticks one of the the boxes required to sell the resources, currently valued at 100m (excluding royalties) so roughly 80 cents per shares.

However for the deal to go ahead its conditional on following,

- Execution of legally enforceable agreements for port access;
- Approvals including EPA and mining approvals;
- Acceptable contract mining agreements;
- Project finance; and
- FIRB approval (if required).

It does seem strange that we would go so far as to obtain funding and full approvals and then on sell it so cheap (10% royalties might justify it)

Either way i think the market will re-rate this one as talks are progressing. Share Price closer to 60cents is probably a likely target within the next 6-9 months.

Gl All.