All of people here trading on hope, and willing to completely look the other way from actual facts, have come swinging for the fences in defense.
Bigben says there is a misunderstanding of the ICT agreement -- I will put out a very detailed post here later today on why Bigben isnt right.
Yes Eddie provided the capital -- no one denies it. But he did it in the most cunning way possible. He could have added more capital in the company by issuing more shares - straight aligned with all the rest of the investors. But instead having his man (Karan) run the show, he just straight up took at 6% revenue cut on a 100% basis. Took out the juice of the long term potential of for minority shareholders. His interests are no long alligned with the shareholders. Yes interests are aligned to the extent that the mines should run and scale up and sell coal. But his interests are no longer alligned for the mines to be hugely profitable. He gets a 6% revenue cut -- irrespective of the coal price. His man (Karan) is running the show -- and together both of them can potentially manipulate coal sale prices to Eddie in a way that that 6% potentially swells to 10%.
A Coal mine making 10% profit margin is a decent mine. Eddie can get it straight out of revenue, shareholder be damned.
CKA Price at posting:
9.3¢ Sentiment: None Disclosure: Held
