'Wiggle room' for Adriana's negotiations with big steelmakers? Yes, I think so here's why...
What steelmakers want:
1. A safe dependable multi-year supply of iron ore at...
2. lower-than-market prices.
What Adriana wants:
1. A joint venture partner paying 100% costs to drill and develop to production ADI's Lac Otelnuk and Bedford iron ore deposits. With ADI providing and supervising the drill crews and receiving results of assays in a timely manner so that they could report to their shareholders and the general marketplace.
2. Their JV partner giving a cash infusion to the company of say $20 million dollars with the proviso that any future iron ore discoveries or acquisitions by ADI would be offered to their Quebec-active JV partner as a first rights to a new JV.
Adriana mght offer the big Chinese steelmaker a two tier iron ore pricing deal.
The first tier (say 50% of Lac Otelnuks and Bedfords iron ore production) at a lower-than-market long term fixed no escalator price.
The second tier (the remaining 50% of production) would be at whatever the world's yearly price would be.
The advantages to ADI would be that they would probably gain a crucial 2nd JV partner, they would have Lac Otelnuk and Bedford developed and producing assets bringing in cash to ADI AND they might have a 2nd company interested in acquiring them which might lead to a bidding war between Arcelor-Mittal and the 2nd JV partner...meaning much higher prices for very fortunate ADI shareholders.
What do you think Sumi and Futrcash?
You need the best companies with the strongest fundamentals to make money in the stock market.
