Problem is, sunk capital becomes almost irrelevant when an asset becomes stressed. Best example I can think of: in 2011 Cliffs Natural Resources paid US$4.9B for the Bloom Lake iron ore project in Canada. It got into difficulty when the iron ore price crashed and they shuttered it in 2014. In 2016 Champion Iron ore bought the project, paying just C$10.5M for an asset that had over C$3B of sunk capital. Core Lithium is another one - since 2021 they've raised over $400M and are currently trading at $185M (of which $80M was cash as at 31/3).
Ann: Notice of General Meeting & Letter to Shareholders, page-70
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13.5¢ |
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Mkt cap ! $68.40M | |||
| Open | High | Low | Value | Volume |
| 14.0¢ | 14.0¢ | 13.0¢ | $189.5K | 1.405M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 18 | 591084 | 13.0¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 13.5¢ | 40260 | 2 |
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