alquimista,I think you may have fundamentally misunderstood the...

alquimista,

I think you may have fundamentally misunderstood the issue here, do not worry you are not alone, Jinchuan do not understand it either.

Presently JNMC have just under 50% of the shares, they are in complete control of every aspect of the company and are not running it properly in any aspect from putting out clear and timely information to running the mine properly so it is profitable and not collapsing. If they were to convert the notes to shares they would have nearly 75% of the shares. No decent independent director who knows how to run a PLC will go near them and the company will ultimately go back into administration and as JNMC hold all the debt, they could default on it and take all the assets as payment giving us nothing - not that the assets are worth anything, if they are not competently run.

The notes must be converted to ordinary debt. The whole loan note idea was a carry over from the Pacific Road deal that was on the table back in Jan 2009. JNMC objected to that deal as it diluted them badly, so they offered to match it. JNMC did not then and still do not to this day really understand the issue; as a communist state run company, is it reasonable to expect them to? - probably not. Just as it is not reasonable to expect them to be able to competently run an ASX listed PLC. So for the good of all shareholders, including themselves, they need give up the notes and give up full control of the Board. As a major shareholder they would still be on the Board and able to protect their interest and play their part in supporting development of the company. At the moment their control freakery is stifling and killing the company.