KDR 0.00% $1.90 kidman resources limited

Published 3 hours ago: Bernstein hopes Rio just wants SQM data...

  1. 52 Posts.
    Published 3 hours ago:

    Bernstein hopes Rio just wants SQM data

    The one positive to Rio Tinto’s (LN:RIO) interest in lithium miner SQM (US:SQM) is possible access to its data room, says Bernstein analyst Paul Gait.

    http://www.mining-journal.com/miningjournal/news/1309003/bernstein-hopes-rio-sqm

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    According to one HC commentator, MD at the AGM said that RIO had NOT to date visited the site.

    Contrast this with MD's response when probed about the German delegates:

    "After the meeting I spoke briefly to Martin regarding point 4 and asked him if the German delegate coming to WA had approached Kidman at all.
    He smiled and said he couldn't comment but stated that the Chinese have signed offtake agreements with nearly every other Lithium company on ASX so where are the Europeans and Americans gonna get there supply from?"

    Source: https://hotcopper.com.au/threads/an....3826944/page-3?post_id=28673859#.Wg17p1WWbIU

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    "Was asked about the court case coming up re forfeiture of tenements...said they're very confident of resolving this matter. Seemed to indicate strong support from the Government on this. Also mentioned SQM had done their due diligence on this, looks forward to putting behind them."

    Source: https://hotcopper.com.au/threads/an...3826944/page-13?post_id=28679211#.Wg18DlWWbIU

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    Forfeiture of Tenements:

    "In July 2017 the Mining Warden in Perth ordered that applications for exemption from expenditure in relation to 13 tenements held by Kidman’s subsidiaries be set down for a hearing commencing on 13 November 2017. Kidman has applied for exemption on four separate grounds under section 102 of the WA Mining Act. After hearing the exemption applications, the Mining Warden will make a written recommendation to the WA Minister for Mines as to whether the applications should be granted, and the Minister will determine the applications."

    Source: September 2017 Quarterly Activities Report


    POLICY GUIDELINES EXEMPTION FROM EXPENDITURE CONDITION

    Section 102 of the Act provides a mechanism for exemption from expenditure commitments for a given expenditure year where such compelling reasons exist, for example,

    force majeure circumstances;
    for reasons such as inability to conduct/complete exploration or mining due to circumstances beyond the control of the tenement holder (eg. heritage issues, restrictive conditions placed on the tenement etc.);
    to retain mineral deposits for future development and production;
    to allow for some flexibility when planning exploration programs or mining.

    Source: http://www.dmp.wa.gov.au/Documents/Minerals/Guide_ExemptExpenditure2010_revised-0002.pdf


    "The consolidated entity see the plaints as opportunistic and the evidence compiled demonstrates that the required expenditure was met. With the expectation that the Warden recommends to the Minister of Mines, IR and Safety for the exemptions to be granted the consolidated entity expects this legal action be concluded by during 2018."

    Source: 2017 Annual Report to Shareholders


    "The forfeiture claims are being dealt with by MH Gold and the Convergent Minerals Company administrator in conjunction with Kidman however it is noted that expenditures over the Mt Holland group of tenements that comprise the Mt Holland gold project exceeded their required expenditure commitments in the years prior to and up to administrators being appointed to Convergent Minerals Ltd."

    Source: 2016 Annual Report to Shareholders

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    10.35M traded today according to my CommSec screen
    12,35M traded today according to my ANZ Share Investing account

    Q: What does this suggest?

    A: Retail investors are the ones selling, since approx 84% of today's trade was visible in CommSec.

    Q: Who is likely buying?

    A: Instos

    Q: Why do we have four red candles?

    A: It's been the perfect storm: (i) China data / lithium sector sell-off, (ii) KDR retrace was in progress having hit all-time highs, (iii) LOW VOLUME BOT MANIPULATION (first 3 days).

    (Today's higher volume was a consequence of these and other compounding factors, and of course higher volume is to be expected as the price goes down since more shares are required to be sold to cash out the same amount as the price goes down).

    Q: Green or Red tomorrow?

    A: I think green, as I can't see this opportunity repeating itself. AVZ, AJM, TAW and others all bounced back this afternoon, KDR should do the same tomorrow. Insto buying has been aggressive in recent days and weeks. Those Instos didn't do much selling today, it was mostly (circa 84%) retail selling IMO. What will happen when those Instos recommence buying? Spring-loaded, retailers flushed etc


    PS. Two other good posts from the AGM:

    https://hotcopper.com.au/threads/an...3826944/page-15?post_id=28682496#.Wg17TFWWbIU

    https://hotcopper.com.au/threads/an...3826944/page-33?post_id=28689666#.Wg168VWWbIU

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    Everything above is my opinion only, please do not rely on it and do your own research. Bolding in quotes is mine.
    Last edited by roundtwo: 16/11/17
 
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