"Ha, love it when the downrampers come out in force. Read the whole section of the accounts. Management are in advanced negotiations with banks to rejig the debt covenants and expect a positive outcome shortly.
This is NOT new news. They already had a technical breach and the banks approved it.
The share price drop has nothing to do with the accounts. It is all about fear and herd mentality. This is a mine with a 20+ year mine life that is just getting started."
------------
Lionel, I don't agree with you either. There is more to the sell off than 'fear and herd mentality'. DMLs sp has fallen since they announced both the c1 cash costs and the debt for bond swap. Clearly the market has responded in part to either / both. This is not fear, this is a reaction to risk. To me the risks are:
- are the terms of the debt to bond swap favourable
- how long will it take for c1 cash costs to reach 1.92
- are there any unknowns coming like a cr for the 50k mt upgrade (probably not but worth thinking about)
Personally I think the sell off is closer linked to the c1 costs than the others. If that's the case there might be a nice V recovery soonish. Fingers crossed.
Currently down another 6%.
down down prices is down, page-36
-
- There are more pages in this discussion • 38 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)