Additionally, the new CEO is planning to strengthen the balance sheet and it will be very interesting to see how he will realize that, as I'm afraid there will be a substantial equity component part of every re-financing effort. Meanwhile, the company keeps transferring funds from the HongKong JV account to the African Minerals treasury to support the company's working capital position. $82M has already been wired in the past month, with an additional $161 being wired over the next few weeks and months. As expected, the company is under severe pressure during this downturn in the iron ore price.
African Minerals has a good project, but unfortunately the declining iron ore price isn't really cooperating with the company's ramp up of the production. This has led to drastic measures such as withdrawing almost a quarter of a billion dollars from the HongKong JV account to its own account.
LAGOZ, Please explain how the above information copied from Seeking Alpha is meant to be interpreted to mean that CFE will be impacted by X % given that plenty of money continues to travel from HK to African Minerals without any evidence the money flow is going to suddenly stop.
Please explain HOW your story may affect CFE rather than skirting around whatever your trying to imply. FACTS, FIQURES, PREDICTIONS, WILL INDIA STOP BUYING IRON ORE ? WILL CHINA STOP BUYING IRON ORE? WILL JAPAN STOP TOO? I would have thought that if I.O can be mined at $34-36 tonne then assuming they have lots reserves they will be in business longer than any Aussie producers?
CFE Price at posting:
13.0¢ Sentiment: Hold Disclosure: Held
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