I think the clean up costs is a real issue......it's such a massive contingent liability. If Glencore were to underwrite these to the tune that the market was comfortable with - say a further A$40m (but this is pure guesswork!) and CRL were then obliged to allocate a minimum level of cashflow (say 10% a year) to reduce that....then over time the Glencore underwriting would fall away...but CRL would be in a much better position to cover these costs.
Clearly Glencore would want something in return.....but I would see it as a plus if they were also motivated to see this work.
Just an idea.....but with such a massive contingent liability hanging over the company (of this size) it could hit the shareholders hard until it's clearer that they can cover the cost.
CRL Price at posting:
2.0¢ Sentiment: Hold Disclosure: Held