"instincts", That is a total assumption on your part. Agree it could be the financial advice from experts in their field. Nobody directly applies for a A$250m loan without advisors involved in the process. Let's dissect what has happened over the last 6 months. Glencore left us holding our drinks? Why? Take a look at AR1 who signed all their copper sulphide ore, zinc & lead from the JV with MIM (Mount Isa Mine) to Glencore for processing at their zinc, lead concentrator + lead smelter. AR1 just wants to keep the oxide material from the JV area while MIM retains 65%. That's a win, win for Glencore. Probably a win for AR1 as well, so AR1 do not need to invest a huge amount of capital (ie: Concentrator & circuit). To me that signifies Glencore are unwilling to budge on any aspect of CYM investment($50m). The elephant in the room swats the insects. Hence the deal fell through. The latest drama with the Bond financiers. From CYM announcement, "The terms proposed for the USD denominated senior secured bond were revised and deemed not commercially satisfactory to the Company." So obviously the financiers changed the terms within the negotiation process and probably at the last minute. Otherwise, why would Barry and CYM's team sit down with them in the first place if the terms were not commercially viable?
We know a copper price boom is coming. We know the South Americans & Panamanians are trying to screw more money out of their copper mining companies. Why? Because they know what is coming. US has listed their strategic minerals and copper is now in process of being added to that list. Seems more dirty pool is being played in CYM's direction. Who's next to try and grab Nifty? IGO?
CYM finance team need to up their game or alternatively CYM needs to boot them out the door and get someone who can close a deal.
CYM Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
