ady progress and update: from ady

I just spoke to ADY (maria) on their cash position and here is what they said:

ADY continues to produce 25,000-30,000 tonne of iron ore per month at the mine. Around 60,000 tonne is stockpiled at the port. The rest continues to be stockpiled at the mine.

ADY will be making 2 handymax shipments by November worth about US$15-18m. Shipments will resume on 15 Feb at a rate of 2 handymax shipments per month. This will be reviewed when the capex funds are received.

ADY remains competent the two US$5m loan facilities applied for will be achieved and the Hawkswood 3m loan installment plus the YA Global loan repayment will be made by 31 Oct.

ADY has the option to defer the Hawkswood October installment and pay more interest if it wishes. ADY also has the option to defer the repayment of the YA Global note at a cost of 1m per month if it wants. ADY expects to repay both by Oct 31.

ADY has entered into an MOA with WISCO on a JV partnership. This MOA states that WISCO will take up the JV with ADY when ady obtains approval and/or contracts to expand its shipping capacity to 1mt of ore per year. ADY also has to provide a JORC for the Mirador tenements to WISCO. This is in progress. WISCO will provide capex funds to upgrade production and shipping capacity to 1mtpa once the jorc and shipping capacity are confirmed. A capex program will then be undertaken to increase production and shipping to 5mtpa.

ADY is also pursuing a US$200-700m capex program independently of the WISCO JV. They remain competent this funding will be achieved. The Shougang SBLC remains available to ADY. ADY is considering all its funding options and will make appropriate decisions on funding when credit conditions are more favorable and a revised capex program is done.

Litigation with Santa Fe, Besalco and Wyndham is expected to be dealt with in the courts early 2009 unless a settlement is achieved sooner.

Note: this was jotted down from a conversation I had with Maria today. Some text has been taken out of the annual report. If you don't believe me the I suggest you ask Maria yourself.