Impact, I'll ignore the patronising tone for a minute and hopefully deliver you some perspective. Over the past month or so anything that had gone before is irrelevant because NO-ONE and I repeat NO-ONE knew /knows what they can deliver. On Oct 1 that world was clearly evident and the Ann on Oct 1 was a lifeline to the company. The challenge was to deliver on the obligation or the company was dead. From a commercial reality perspective anything prior is irrelevant because it was about survival. My view is that this company has probably suffered from too much disclosure with a genuine attempt by management to keep people fully informed. My read of PT's response to the Shougang was that was the best info he had at the time and that ady had some leverage to get them to provide some financing. He simply reported the evidence he had as he has correctly qualified it. Guess what happened to the iron ore market in the past month or so,so the leverage disappears. But you know every dog has his day and from my understanding of the iron ore market things will improve. Recent prices have seen US$125/tonne -they go back to US$75 /tonne -last years prices and the basis of BHP $18 billion profit at a 90+ cent dollar.Spot market extremely volatile tends to capture emotion rather than fundamentals so current US$50ish spot not sensible guide. Could be $200 in six months just don't know -key is to get some reasonable term sales contracts in place at price that works for your cost base. Did Shougang disappear on the same day as the RLL deal - I don't know but my guess would be that the total focus of the Company's attention was on a deal to meet the Hawkswood obligation and the Shougang situation emerged in the middle of that. For clarity there was not a Shougang contract but an indication of intention and Shougang failed to provide a SBLC at a time when the global banking system was going through the most significant crisis it had ever faced -and for that matter is still sorting itself out. What a surprise no SBLC!!
You need to read all the material as well as CEO anecdotes and then have a look at the world around you and try to gain some insight into how it will effect behaviours and outcomes. AMAZING THAT A DEAL WAS DONE!!!! CONGRATS TO DIRECTORS
ADY Price at posting:
2.1¢ Sentiment: Buy Disclosure: Not Held
