well, based on the latest production cash cost, the company is still making money, unless of course they miscalculated it and reported a wrong figure? The high interest debt gave them no breathing space. Combined with lower margins due to the drop in price, suddenly they cannot afford to pay the interest. it was simple maths that even a 24 year old me could do. Clearly they needed to pay off the debt to have more options on the table on a downturn. But someone with so many years in the mining industry doesn't know how to prepare for a downturn? A big joke.
Yes, the problem with A40 is not the debt, its the lack of management's ability to do up proper finances and projections. You can be great with all the technical know how and bring value to a company, but at least bring in people with the right finance knowledge to cover your short comings.
A40 Price at posting:
8.2¢ Sentiment: Hold Disclosure: Held
