Get some of the facts right if you are going to ramp
current capitalisation MMX $1.345 billion
MPL to own 50 % of new companies.
$3 billion is project cost to get it to planned annual production by 2011.
MPL to give MMX $150 million to retire MMX debt and provide funding for capital costs in return for half the company. MMX i understand are to fund the other 50% capital costs.
No one knows what MPL paid for this 50 %.
Future payments from MPL are based on agreed valuation and none of us know what these are.
This is a capial raising by MMX to fast track the project in return for half the company.
Also if you read the MPL release they now own all agency rights to MMX iron ore going forward except the previous contracts like posco.
So little chance of anymore chinese deals here.
This 3 billion figure has got people stir crazy.
Based on all these comments I'm inclined to sell tommorrow on all the hype that has been whipped up.
I'm sure some of you would like my shares. I'll buy them back once the hysteria recedes.
MMX Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
