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Presumably there is a cost associated with issuing an RNS. Anyone with experience of running a PLC know what this cost is.
Purely out of interest ...
A great deal of thought is being expended on ‘known unknowns’ although I applaud the intellectual excercise.
There is more information available that we are not privy to. It might be info that is 90% certain at this stage, pending results if expert confirmation, and this probably goes way beyond the current drilling hole.
The figures being bandied about are, I expect, understated as a result.
Time will tell. I’m enjoying the ride, and everyone’s concerted efforts.
XTR has put a great deal of work into proving the Racecourse resource. It wants to sell it on, not mine it itself. It is an exploration company.
Anglo American gets first chance to make an offer to buy this resource. It has to make a realistic offer as it can be rejected, with XTR coming back with a counter based on an independent ValMin review. XTR is likely to be reasonably well aware of what the ValMin valuation might be (ball park).
If AA miscalculates the value or their strategy at this point they lose the first place in the queue and will then compete with their competitors for the right to mine this resource.
Major mining companies need to secure areas of ground that contain stuff they can dig up and sell. There is a reducing availability of bits of ground like this in the world. And this one happens to be rather big (life of mine maybe 75 years?) and in a dependable and politically stable region. Oz.
And we are talking about Copper. Just looking at the demand for copper in the new world of electric vehicles is enough to make you gasp.
XTR is currently proving a very desirable asset.
That is incorrect. It is not an agreement related to the whole licence. Whether they would be comfortable buying a part of the licence back and leaving another company (XTR) in control of the rest is debatable. This would lead no doubt to discussions to adapt the potential deal to suit all parties (as opposed to being a barrier to entry).
This is not a situation out of a Jeffery Archer novel. It is big money, driven by international trends and would be a significant deal for whoever chose to take over and mine the resource. It is highly nuanced and well beyond the to and fro of a share chat bulletin board. For these reasons, and not forgetting the pointers towards the value of this resource, it is very exciting indeed and so far removed from the day to day up and down movements of the current XTR share price it is hard to state adequately.
It is also incorrect to say that Anglo American has a 'hold' on anything. 'First refusal' would be a better term, and if they don't like the price offered, or in the other scenario they don't offer a price XTR agrees with it goes to independent valuation using a recognised valuation model.
Full understanding requires an awful lot of homework (or a seat on the Board) - full time immersion.
You don’t say!
Keep up …
Yes, valuable to see the full picture. But as with most aspects of investment it is not valuable to focus too much on timescales vastly shorter than your investment timescale.
The inner workings of the equity markets are not well understood even by those on the inside. Lack of clear understanding of the market maker function and process by retail investors understandably leads to guesswork as to what is going on behind the scenes and we end up with the equivalent of conspiracy theories being repeated again and again.
These Bulletin board discussions of those ‘shady’ MM’s have been taking place almost word for word for decades.
The function of Market Makers is described in the name. They are an essential part of facilitating the exchange of shares, particularly in illiquid low caps like XTR.
Why is everyone so obsessed with ‘late buys’. They are not, of course, late buys, but trades reported outside of trading hours. There can be many reasons for this. Nothing sinister.
E.g. I call my broker soon after markets open with a requirement for 1 million shares in XTR. 1m shares are not readily available so he asks one or mire market makers to accumulate enough to fill the trade. They will work this over the course of the day, and these many smaller transactions will most likely be reported as ‘sells’ as they occur. Therefore the overall balance of ‘buys’ to ‘sells’ will be somewhat skewed. Once the 1m is in hand to satisfy my early request the transaction is completed. The reporting of this trade is a bit of housekeeping that will often be carried out after the busy close of market period, so it can be seen as one of these ‘late trades’ that seen posted at e.g. 16.57.
At which point BB posters get upset and throw around accusations of shady MMs trying to manipulate the market.
Where there are Yorkshiremen, there is tea.
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The personal risk is miniscule in either case, but you have to admit that you would be even less at risk driving down the A303 to sit in a holiday cottage in Cornwall compared to spending hours waiting to depart from a crowded UK airport terminal.