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04/05/17
09:32
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Originally posted by Hot_tomato
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Definitely a sad day for shareholders when reading the 6 monthly. Where did it go all wrong.
1. The plant is made from cheap Chinese steel primarily in the wear areas. Needs continuous stoppages for maintenance. Can only reach nameplate on a few days a week.
2. Bringing in a Chinese MD with no experience in processing or commissioning.
3. The Board letting Sino Steel out of their contract to rectify faults in the process plant. This will cost CDU $50m to $150m in costs and loss of production.
4. Treating 800,000 tonnes of the high grade stockpiles with no operating "in stream analising" machines working instead of putting low grade ore through first to commission the plant. This is unheard of in the industry.
5. Appointing Sino Steel as the Chief operating officer to over see the mess. That way no official complaints.
Just one big mess. Can't see a way out. Need $100m NOW. Titanic in progress.
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Just over 7 weeks till the next Minsheng loan repayment falls due - Will the new mob prop for another $22m in convertible notes ?? Will yet another shelf company throw in the $$$$ ? Do they have any more forfeited loan stock to sell ?