UFO strategy1 Dec 2025 10:10
I'm trying to understand the logic behind these strategic choices that UFO is making by going with junior partners instead of the big players, and the reason why they are withholding information. Some people talk about bad management and lousy deals, but I prefer to look at the bigger picture first. UFO is a small player holding some extremely strong cards. However, if all those cards are already face-up on the table, they’ll get bought out immediately and the game is over. In this case, the timing of when information is released is worth just as much as the information itself. Even if a JV were to be formed with one of the big boys, that would be disadvantageous in the long run: it would be impossible to ever get 10% of the shares of these large companies, you’d be a 30% owner only until the decision is made to start mining. The big players would just laugh and keep delaying the mining decision until Alien is forced by necessity to accept a royalty deal and still loses 100%. It’s better to team up with another junior that also benefits from a quick mining decision and in which you yourself gain, say, 10% ownership, giving you a strong governance barrier against hostile takeovers. I can definitely see the logic in this: it ensures that as a small company you remain standing among all these powerful players, and once there is stable growth at all your JV partners, you are firmly entrenched when the joint decision to mine finally comes. If you do this across all your projects, you remain a player who stays in the game and who can continue looking for other highly promising projects that they can develop in the same way.
Sign In
Follow the stocks
