LT debt recently renegotiated on favourable interest rates of around 5% from memory. pretty cheap capital - provided the company uses it to generate returns in excess of 5% + overheads.
i personally think we'll see the $960odd million used to fund molycop returning in excess of 5%, and we'll certainly see the 400odd million spent expanding iron ore capacity returning more than 5%.
debt in itself is not bad, wasteful use of lent funds is. prudent use can lead to great increases in value. imho ARI mgt has given s/h every reason to conclude that they have a strong strategic plan which is being executed extremely well. glta.
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