A Higher Offer for Molcycop, page-23

I agree. Despite many mistakes, this gso move warrants some applause, not because it will dilute shareholders but because it forces banks to act, pressures gov to act, and potentially send message to other ppl who underbid molycop to come back. I do however think the gso deal is no going to go thru.

Of course robert would publicly say that gso is their best option because it's the only one laying on the table. Saying the opposite would be tactless and gets him trouble from gso and lenders etc. You would say the same thing if you were in his position.

Would gov let a US company own a strategic steel manufacturing asset that's key to the sovereignity of a country?

Would banks be stupid enough to take 50% cut when they can relax covenant and get more than 50% in the future because the mining consumables are throwing cash, mining is close to breakeven, and overall steel division has come back to being profitable again?

Remember, the whyalla steelwork is not the only steel asset. Arrium has 2 EAF in melb and sydney that are giving $80m. This whyalla steelwork is just dragging the whole show down. It would be morally and politically tactless to close it however. Thats why robert gave the ball to the gov and let them carry part of the headache.

Im not entirely amused with how management has been running the company, but hey you gotta give credit to how to could come up with this gso deal purely just to get stakeholders to come to table.

Can you imagine if robert came to the banks without having the gso deal in the first place? Banks would just act tough and wait until 30 june. $20m cancelation fee is small in arrium's case, and nothing compared to what would happen if banks just have the upper hand on 30 june.