market sentiment in specs and abu d finance

Interesting to see that a few specs are starting to run on good news once again.It seems the overall negative market sentiment might be starting to turn for the better just as long as there are continued efforts on the US/Euro liquidity front.

I am presuming that the due diligence delay explanation was only a partial part of the reasoning behind the further wait for Abu D finance.

I would think that a rather large part of the delay would have been the liquidity issues the banking system has been facing as of late and perhaps the banks gave Gip a ball-park estimate as to when they might expect to finally emerge from these issues and be able to forge ahead with the financing.

"The international engineering group Lycopodium prepared the DEFINITIVE Abu Dabbab feasibility study. Directors are pleased to advise that independent technical due diligence review of the definitive feasibility study by Coffey Mining on behalf of KfW and DEG HAS BEEN COMPLETED. The completion of this review was delayed due to additional work associated with the production of SynCon and general engineering industry work backlogs.

Accordingly, the Directors ANTICIPATE that KfW and DEG will consider their position with respect to project finance for the Project BY THE END OF FEBRUARY 2009."

"Anticipate" eh!

THAT word always leaves a taste of doubt in my mouth .

But given the independant due diligence review has been completed by Coffey in mid November I wouldnt think it unfair to assume that if these banks are slowly getting back to some form normality with any liquidity problems that we might just finally see some decision between now and end of Feb.

BUT will it depend on what is to happen with the other 20% to be raised and is this to any degree dependant on the beginning of 2009 Ta2O5 price negotiations which may determine just which way either the current offtaker or one of the other major Ta2O5 consumers might want to go post the exhausting of their powder stockpiles.This is assuming that there is enough motivation for the powder consumers to go with someone else rather than Talisons expensive stuff in two years time.