Parsons is looking happy because he will still have a job if they get to the production stage before their current funds run out, but if he has to dilute the shareholders by 200% to get to that stage well that is too bad.
We can feel confident that if MacBank provides the funding then we can kiss goodbye any significant upside from the project for years to come. Every miner that has borrowed from them has been done over. At the slightest sign of infraction of the funding agreement they will be in for a lot more of the project's upside.
And if the project does become profitable after all the hedging etc, then any surplus funds will be used by Parsons for daft projects and to help mates out by buying their assets at over-priced levels.
The best thing for us would be a takeover by PRU or RSG.
loki
GRY Price at posting:
11.5¢ Sentiment: None Disclosure: Held
