Molycop sold for $1.23b, page-47

The lack of transparency continues with KM under ASICs allowance.

All we know from gleaming at opaque reports:

31st Dec 2015 Net debt 2076 m Cash 303m

April 4th entering administration cash 117m (cash burn 186m for the 4 months ?? more than prior 6 months)

KM report gives October 14th receipts minus payments implies cash inflow 155.5m

KM report gives no gross debt levels, no net debt levels, no cash statement.

Creditor payments (other than debt) contingent on liquidation. Whyalla now increasing work force to keep up with demand. Iron ore at 2 year highs. All divisions profitable. Liquidation no longer applicable.

4th November sale of molycop approx 1600m

The above gives net debt around 2356-117-155.5-1600 = 483.5m.

Even if the net debt on entering administration is 2800 (means some disastrous, cashburn of 586m for jan to apr 16) the above still gives a net debt of 927.5m.

Not great but still easily manageable on current annualized EBITDA of 300-500m.

Given the substantial tax assets. Most of the EBITDA will be free cashflow.

Given the above why on earth do you need to sell?? The debt level has been cut substantially. There is no reason why Arrium cannot have a new debt refinanced for a longer term over 5 year period. New leaner board implemented. Why force creditors and members to be out of pocket. The future is much brighter for both steel and iron much more so than before entering administration.