CDU (ASX) Ann: Appendix 3B

Originally posted by roh ↑

ozblue,
I mentioned to malgmac that before the CuDeco Board signed off on the Minsheng bank loan it would have carefully scrutinised the loan in line with its fiduciary obligation and would have had to be satisfied with the documentation.
CuDeco has informed us :-
That the Minsheng Bank when agreeing to grant the loan of US $65 million dollars { approximately $70 million Australian ] has also agreed to increase the facility to US$ 100 million if the Cloncurry rail and Townsville Port facility require additional funding.
That this was after exhaustive due diligence process by the Minsheng bank.
Loans of this magnitude are not easy to secure particularly in the current climate and are not done in haste.
You have some doubt in your mind which is not in mine. Having Chinese Directors of CuDeco representing major Chinese companies would ,I feel, have helped considerably [ apart from the viability of Rocklands ] in securing the loan. The Minsheng bank would not want to let them down particularly companies of the strength of Oceanwide and Sinosteel. I am perfectly relaxed about the loan. If needed ,it will be used. You can have a good night's sleep on this one.
As to your inference that I work for CuDeco, unfortunately I do not. Cloncurry would be too hot and remote for me although they say you always get a warm reception in Cloncurry.
Incidentally, the AGM is months away. There could be a lot happening before then. I do like Tuesdays.

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Roh these contra deals are nothing more than smoke and mirrors IMO if you have ever traded a used car in on a new one you would be aware they will pay over the
odds for your trade and not reduce the price of the new vehicle by very much $$$ in contrast without a trade the cash price for the new car reduces Substantially ,- my guess is the price the company would pay in real $$ as opposed to issuing shares at $2 would be less in real terms -

If the share price is $1.70 and the interest on the borrowings is 7 percent and there is now cash income for 18 months then $2 contra shares is about the same as paying for services with borrowed money - one thing it does do though is fly in the
face of the company view that the current share price seriously undervalues the stock ! If that was true then they wouldn't be issuing shares at $2 they would be paying cash with the borrowed funds from minsheng !!!

as per usual the carpet don't match the curtains for me !!! ..??