Ann: Strandline agrees to sell Tanzanian mineral sands assets, page-2

Well, I reckon that's curtains for shareholders in STA sorry to say. Before everyone starts ragging on me for being negative, keep consider carefully what has just happened...

The $43M of Tanzanian assets held by STA outside senior secured Coburn debt (ie ring fenced and would remain STA's to underpin some value for shareholders if Coburn was closed or the debt restructured and sold to new owners) is now GAWN and tipped into the yawning cash sinkhole that is Coburn. How long will whatever cash doesn't go to repaying super senior holders (~$20M) keep STA afloat and repay the ~$300M debt burden a struggling Coburn is being asked to carry?

I say only long enough for Coburn to hopefully demonstrate sufficient positive operational cashflow that 'new owners' can takeover with some sort of recap and make a go of it for all the employees and suppliers etc that work with Coburn. I'm 99% sure this future will involve a debt haircut and restructure, shareholders wiped out or diluted into the very RHS of the decimal point your calculator simply to keep the listed shell as a vehicle.

No surprise when you follow the money... Super Senior creditors paying Patarica a $750k bonus to sell Tanzania rather than keep it ring fenced and hand the keys back to the banks and say you restructure and recap it yourself if you won't support us any further. Only time will tell, but I've been calling this outcome for a long time (including the risk of it from 18c down) and despite the haters I'm right much more often than I'm wrong...

GLTAH none the less