Kalahari EGM Jul 09
I attended this morning’s EGM but first, I must hold my hands up to having missed the train that I had intended to catch and, as a result, missed the formal meeting. Nevertheless, my trip accomplished its main purpose.
The formal meeting was quick (I was only about 6 minutes late). It appeared to have been chaired by David de Jongh Weill, no other Board members or Rio representatives were present (so it was clearly viewed as a formality) and I raised my questions with him when I arrived. He advised that Coronet had not voted – and that all resolutions had been duly carried. In conversation with analysts after the meeting DdJW indicated that “Extract executives had been the problem” and that “Mark [Hohnen] had done an excellent job”. I will leave it to you to draw your own conclusions, however, the fact that Coronet didn’t vote indicates to me that a clear agreement must have been reached with Peter McIntyre.
DdJW also appeared to indicate to the analysts that some form of deal regarding the development of Rossing South was close to being struck. I asked him whether any Extract Board members had met with the Russian delegation last week. He said that he did not know. From his tone, I formed the impression that the answer was probably “no”.
Finally, I asked about funding for Niger Uranium. As on the last occasion, he demurred on giving a direct response (market sensitive) but did suggest that I wouldn’t have to wait long until this issue is resolved. It occurs to me that if the deal to develop Rossing South is in the form of an asset sale, that could simultaneously resolve any funding issues regarding URU.
Coupled with this morning’s “ahead of expectations” resource upgrade from Zone 1, I remain optimistic on prospects for EXT, KAH, URU, EML and PRL (I am currently invested in all of these apart from PRL).
Regards,
Mark
PS: DdJW was also promoting this company, which he is CFO of: http://www.tldh.org/ He said that he believes that each of the new top level domain names TLDH can aquire rights over should be worth around $25m, based on expected forward revenue streams. DYOR
