UMC 0.00% $1.30 united minerals corporation nl


  1. 1,354 Posts.
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    Interesting times. Amazing how the UMC clan keep the faith. Even the criticism of the directors has been mild by the standards of other threads. By this time next week the quarterly will be out and if it does indeed include assay results of new targets it has the capacity to be a 'company-maker' for UMC.

    I am not convinced that there will be a mgs agreement with one of the majors, instead I believe our best shot is with a benevolent end user with a twenty year vision. If there was a mine gate sale, commercial realities are it would have to lock in all of the UMC output. (In effect a mgs agreement would be assisting a competitor to be come financially viable and no-one should give their competitor enough rope to become even more competitive.)

    Secondly the company agreeing to the mgs would have to take a blocking stake in UMC. (Imagine if we had an mgs agreement with BHP and then FMG took over UMC. BHP would effectively be assisting a major competitor.) Either that or the contract may be terminated in the eventuality of a takeover thus making UMC less attractive to a predator looking for quick cash flow. I know the blocking stake was not taken in the one agreement signed so far but that company has such a tiny resource it is inconsequential.


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