the solution, page-10

thestockguru

Re your plan: "The Company Solution to help Refi."

IMO you could have inserted a new:
Point 1: Build investor confidence - communicate more clearly to avoid market overeaction / panic.
Point 2: Cancel all executive meetings / remuneration - until PH comes on stream focus on operational matters.

Re your list of points:
1. Michelmore goes. CFO too. OH reinstated.
IMO AM has not gained the confidence of investors but OH has lost it & in hindsight may have been more spin than substance [to quote someone else]. Another example of grossly overated CEOs but the replacement process may take forever without any real gain. I prefer a re-education program - quality mgt training for these guys asap.
2. PH completed by December working 24/7. In China it would be finished by now.
Monadelphous is supposedly now on the job - IMO they are a brilliant engineering firm & will deliver what is feasible [disclosure - I also hold MND] & to a very high standard.
3. Century and all zinc closed.
IMO reduce to much lower production levels but do not close - zinc is grossly oversold & in shortest supply of all base metals. IMO it will the first to recover - big time!
4. 1000 + Job cuts (so sorry about that but this is survival mode)
IMO such drastic action is not called for - loss of trained staff etc. Reduce hours worked until PH comes on stream.
5. Institutional Placement/rights issue
Strongly agree - time to get rid of bank stakeholders altogether - they have shown they are not worthy of being called 'sophisticated investors' or given the opportunity to invest in OZl. As for [media reports say] RBOS, well why use them in the first place?
6. Asset sales
Only as a last resort - OZL has high quality assets that have been hard-earned & their loss in a firesale would be tragic.
7. Convertible debt/equity swap.
Morgan Stanley has already come on board - after the ABS experience I do wonder though. Given the flight of US investors from Aussie stocks perhaps it's time for some sovereign Chinese investment [come on Rudd & Swann - encourage them to partner Oz miners => win-win!].
8. Another bank found in sydnicate ASAP. Rogue removed.
Essential - why use a dud that has already demonstrated a willingness to behave so provocatively / irresponsibly.
9. All capex immediately cancelled on everything other than Prominent Hill
Everything in moderation - IMO a sliding scale approach would be preferable to avoid future costs associated with a re-start.
10. Maybe even resort to retracting committed capex to buy time for PH.
IMO only if this is reasonable & will deliver a real benefit. Again, relations with long term contractors, staff & communities is important - the loss of which also has important value.

4YIO - NFA