The price of chromite has fallen away and there is a large stockpile in China, like many other commodities, but we have a plant that is finished and running at near name-plate. So if the markets fall further, then I would be thinking the plant would be going on care and maintenance.
As for it being the end, that won't happen with Sentient at the helm. They are the owners of Megallan Metals, and every west aussie knows about the pain this company has been through, but Sentient are still there, and they've got it running again.
Now is there a possibility of some heavy dilution? yep no doubts. But I think Barry and the boys will be searching for a cornerstone investor to throw a few bucks in or a full blown offtake agreement. I wouldn't be surprised if the Chinese or some asian company are doing the numbers.
As for the suspension. The share volume that has been running through in the past month is near nothing, and if they are doing some sort of raising, probably a good idea to hold the price at some point.
It's far from over.
Pep
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