half price molly, page-22

Effectively mol sold $150m at high coupon rate. but no higher than junk bond rate, and the quasi debt was always going to be junk bond, so no change. Nobody should be dissapointed. mol has no hard assets, or cash flow = junk bond = high interest rate.

Where mol has got a tester, is the project needs equity finance as well. And harbinger and mol didn't want to sell equity at less than what they paid in 07 when equity was available. So mol held off for this reason when they could have raised the cash at $2.50+. That was a mistake Mol made then, and even more now. Any equity issue now will be at a giveaway price to end user.

Suspect they will be "forced" into selling more of the project than they want.

Not so bad. Plenty of upside in mol valuation. (Don't forget they also have copper, iron ore and even tungsten as well). However, s/t sp will be crap.

What is weak is Mol attempts at keeping big holders in. Sellers will always be around in bear markets. but you have to give holders reasons to hang in, as well as tantalise the investors holding off.