copydog and smerfie
You might like to visit http://www.newworldalloys.com/ and have a sniff around. Going by what I have read there (the March 03 quarterly is interesting), I think it very unlikely that Stanwell could operate profitably until the Chinese stop dumping magnesium. You may recall that NWA was going to build a $150 million (US?), 90,000 tpa magnesium metal plant in Malaysia but pulled out due to the uncertainty of the magnesium price. Do you think that Stanwell at $1.5 billion AU for 97,000 tpa has a chance?
The socialist notions of State Planned Development and of throwing money at a project until it works are very well tested ingredients for many an uneconomic project. Still, with the guaranteed capital return of anmna (I wont perpetuate a lie by calling them dividends, though the payments would probably satisfy the Qld Gov's definition of a dividend, judging by the way money has been taken from its corporations of late!) the downside is limited.
It will take alot more than SARS to get it going I think.
As an aside copydog, what do you estimate ANM's net cash position to be atm?
Billy
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