I doubt that you'd lose anything in a hostile takeover. Worst case would probably be a 50% gain.

The only three significant risks right now, which in my mind are not that significant, are:

1. Global financial system collapse as a result of the Euro crises, a related banking crises, or a soverign default crises, all of which will incidentally be tied together when they happen. Actually, this isn't too insignificant. I believe that it almost certainly WILL happen. I just hope that it will be deferred by the politicians and the markets for as long as possible, so it hopefully happens 18 months from now instead of 3 months from now. And I hope that KWG pops before then, and I can pull my money out of the market. My portfolio is already quite reduced, and I only have a couple stocks left including KWG. If this all happens, I could see KWG dropping to south of 5 cents, as the entire market is decimated, much like 2008. Not much we can do here except cross our fingers.

2. That Cliffs actually DOES go ahead and produce from Black Thor first, and let Big Daddy stagnate. In that scenario, KWG still has the railway as a strength, but their value as a partner in Big Daddy would be locked up for many years. Cliffs would probably buy KWG out for a moderate amount, quietly, several years from now under this scenario.

3. The 3P railway proposal does not come together. The railway would still be built eventually, but financing would be more difficult for KWG and partners. Actually, this is also quite possible. It wouldn't put KWG into a "loss" position, but it would negate a possible short-term immediate windfall.