CAP 6.00% 9.4¢ carpentaria resources ltd

My tip is the interested party is Whyalla's man of steel -...

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    My tip is the interested party is Whyalla's man of steel - Sanjeev Gupta and his family's GFG Alliance group of companies.  

    My reason for this is a combination of:

    * Gupta has been quoted as saying that he wants to build an integrated steel business in Australia and expand Whyalla plant.  Therefore a need for additional iron ore.

    * CAP's quarterly report states :Negotiations continue with Tier 1 customers for off-take linked BFS and construction funding in the context of increasing competition for product and higher premiums for high quality iron ore products. A number of site visits have occurred this quarter and subsequent to the end of this quarter" [emphasis added to last sentence].

    * Havilah Resources (HAV) has similar magnetite resources at nearby Maldorky and Grants (not that close, but part of Braemar Iron region) and announced that SIMEC Mining (a GFG Alliance company) had commenced due diligence on Havilah's iron projects.  Havilah's twitter post from 19 July notes SIMEC consultants on site.

    * If you are SIMEC, given the similarities it would be prudent to look at CAP as well as HAV (HAV is only a resource with exploration potential, CAP is more advanced with PFS completed and BFS ready to go).

    * Existing rail line from Broken Hill to Whyalla means existing infrastructure to Whyalla steel works makes both HAV and CAP's iron projects a good fit with similar geology providing economies of scale with diversity of location and a true long life supply of ore that Gupta would need to justify the investment to upgrade the Whyalla steel works.

    For those interested, check out @Clark888 posts re SIMEC on this thread under HAV - https://hotcopper.com.au/threads/an...lahs-iron-ore-projects.4256481/#post-34690164 - lots in there about Gupta's plans for Whyalla's expansion.

    Clark888's posts are really well researched and great support for Gupta to do a deal with either CAP or HAV (but my tip is with both).  

    (Disclosure - I hold both HAV and CAP)
 
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