hammered, page-5

Yes, Blythefan, it is quite depressing.

And the stock price continues to fall.

I think the smelter situation is basically resolved , the power supply dispute with Zesco is still ongoing, but I believe it will be eventually resolved, without us having the power cut off. At least, the lights are still on so far :-).

EQN is definitely a small company in the scheme of things.
It is not a good time to be a (new) Cu producer.

First Quantum and Glencore would love to see EQN fail, or better yet, buy the facility themselves cheaply.

The low copper price is a major challenge, particularly as EQN are now at their worst possible position re debt, having lost 6 months production when the Cu price was sky high due to the transformer fire, and now trying to ramp up during the Zambian wet season, plus having a heavy debt repayment to service later this year.

Cash seems to be very tight, and although we have some cash flow coming now, suspect the company will need to find more capital in the next 6 months or so,
possibly from the banks, possibly from the shareholders.

So the outlook for the short term is quite bleak, I think, merely survival mode.

Medium to long term looks better, as production will increase with time, hopefully Cu price will too , at least marginally, and the rains finish next month.

A 37 year mine life is reasonably attractive to a take over offer also.

But,at present I wouldn't be surprised if the sp continues down, possibly even as low as $1.

I'm holding for the medium term .

FatMan