Had a simple think over. The problem facing AXO may likely be due to the fact that Rockcheck is a tiny weeny steel mill and (together with Chengdu Steel) has secured an offtake agreement for what AXO can dig up for the foreseeable future.
For a big Chinese mill to provide financing, the only incentive is part ownership of the ore (JV) and secured offtake of mined ores.
Rockcheck (unlike Shagang in the case of GRR) doesn't have the financial muscle or ability to get such a big loan from a Chinese bank - in reality the Chinese soverign fund (which typically loans out the money at an attractive rate only when a state-owned mill is involved).
It's hard to see how the funding deadlock can be resolved any time soon.
If Rockcheck were WISCO, Sinosteel, Ansteel, Angang or Baosteel, then AXO SP would now be $1 at least.
AXO Price at posting:
26.5¢ Sentiment: None Disclosure: Held
