Hi, From today’s announcement, I see two positives have come...

Hi,

From today’s announcement, I see two positives have come out.

1. For PEX to be buying back the NSR clearly indicates that PEX and their major shareholders (including SBM and HHM) are confident that there will be a profitable mine out of Wagga Tank Southern area.
2. As the company was trying to negotiate this buyback of NSR – it is a given that company would not have revealed all their cards so as to minimise the upfront payment (As these negotiations usually are protracted and last over a few months, the information coming out of the company has been slow and may now pick up).

On the negative/positive side – our share register is dominated with three/four parties with about 65% of shareholding in total. The positive is that we will not / can not be taken over cheaply (if and when that happens). The negative is that not all these shareholders are flush with ready cash but they still want to maintain their percentage going forward – it will be in their best interests if the shareprice is not that high so that they outlay minimum amount to keep their interests intact. This fact combined with point 2 above may be the reason that these shareholders were not baying for MD’s scalp as the shareprice drifted downwards over the last several months.