i agree CAZ should be re-rated significantly on ratification from the investors board and then again in a months time on completion of the DD period.
some punters out their believe CAZ is giving away the farm too cheaply.
when you look at the reasons CAZ missed out on Kwinana when they had the better project, were further towards development and closer to the Kwinana port, it the most logical reason was they did not have the balance sheet or the funding to give the port comfort they could deliver. Something Min Res could.
The great thing about this deal for CAZ shareholders is brings the 2nd last piece of the puzzle for the Parker Range project thus ensuring the final piece being a port allocation at the Esperance port. We all know without the port and financial backing the true value of Parker Range would not be realised. Parker Range now has a reserve, feasibility and financing something no other yilgarn iron ore hopefuls can claim in the near future which ensures parker range gains an Esperance port allocation.
By selling the projectt for $100m plus atleast $80m in royalties ($11.5m per year)is a great result for shareholders. Some of the pie was going to be left o the table for the financing. This deal ensures CAZ monetaries the project without taking any commissioning risk. Given CAZ paid less than $0.5m for the project about 3 years ago i am looking forward to what the CAZ invest the proceeds in next. Will it be Earheedy, Winmar (which they still own 100% of by the way), something we havent heard about yet and will we all get big fat cheques in the mail.
Kruizer, do you have any other suggestiong where we should put our cash instead.
CAZ Price at posting:
35.0¢ Sentiment: Buy Disclosure: Held
