So , in January ,in their response to the ASX questions , they stated "As previously announced, CMC has already raised $1.877M from the rights issue. CMC announced on 13 December 2018 a further subscription agreement for $4.35M under the Rights Issue. The total raising to date is $6.227M". We had been told many times the environmental upgrading ( for the plant that was already compliant ) would cost ( conservatively ) $1.1M , be producing Mg by March and in full production by April . Now we have no money and , after a meeting in Feb , they decided to not go ahead with the environmental works needed . For a plant that was planned to recommence Mg production in March they had not struck a blow on the $1.1M environmental upgrades by Feb ?!
They say recommencement of production would include new desulfurization and dentrification equipment and monitoring devices . This comes as a surprise to a company that had built a Mg producing plant , utilising the pidgeon process , and installed coal to gas facilities ? What have all the other Mg producers been doing for the last year ? I'm not aware of any Mg shortage gripping the market .
They say the supply of calcined dolomite is also stopping them from producing but they have calciners , we have seen pictures of them . Dolomite , yes , but calcined dolomite ,why ?
What happened to the MgLi production they announced back in September ? They needed neither coal to gas facilities or calcined dolomite supply for that , so why is that not continuing ?
And now they want to sell the multi million dollar ($14.7) plant to some chinese mob for $200k !!!!
No , surely Mr Smythe will have more to say about this .
CMC Price at posting:
1.1¢ Sentiment: None Disclosure: Held
