answer to butcherbirds request, page-5

William

All Valid points.

Your assumptions and conclusions are similar to my own.

If I was a betting man. Which I am then I would assume that looking forward we may well see a Chinese partner that helps bring this project to fruition. As you say, a Chinese company does operate in a neighboring country which would provide some level of comfort to another Chinese company should they choose to invest in this project.

My Opinion regarding FMG raising capital in todays market is puely speculative however it would be that they would raise the funds necesary given the connections Forest has within the Financial markets. The price he pays now may be different to what he may have already paid but I have no doubt that he could raise the capital necesary to fund a project just as I have no doubt that the directors of SDL could raise the necesary capital for this project. What is the issue here is price and that is anyones guess given current volatility. Should Reserve banks (ECB or FED)move to reassure markets by dropping rates from current levels then it is conceivable to think the cost of financing could potentially be lower than current levels.

Regarding a capital reconstruction of SDL, of course this can not be written off and of course this does not mean that shareholder wealth is destroyed in the process. It simply means that something like 1 for 5 is put in place.

Any further thoughts you have will only add to the thread so please post as this is what the thread and forum needs.
Cheers
Belkin