it depends on the nature of the recapitalization. i note today...

it depends on the nature of the recapitalization. i note today they have announced termination by mutual agreement with peak mines. i guess it was an unprofitable contract, so they effectively walked away from that. any new finance deal will have some covenants attached. alternatively, there may be a new investor who comes in with fresh equity - that probably would be offered to them at below the 21c closing price. if that's the case then i would expect the SP to drop but then start to build as those who want out will dump and those who see the business now stabilized and able to regain value start to drive up the price. with a new ceo and new Captial injection there may also be a restructure to take out cost which will cause some loss of cash through redundancies but i suspect the market will welcome that as it will show commitment to returning to a sustainable business model. my overall take on the situation is that the board will get the company through this. they have skin in the game and have personal reputation to defend. the outlook for coal and gold is good for the next 3yrs which is favorable for them to get back on track. mining companies need these contractors to do things they only occasionally do. they dont have the staff or equipment for it - better outsource to companies like MYE. some thoughts...