The situation improves when the bridging finance is in place.
The closer Moly gets to production the more likely finance will be obtained.
Originally Moly's objective was to have finance in place by March (I think). 21 months from production!! (Too far away in the financial turmoil of the day)
Bridging finance in October brings proposed production closer --- 14 months.
Assuming construction of mine infrastructure continues on target with briging finance in place until 2009 there will be less than 12 months to production.
Obtaining finance with the mine well into construction and completion less than 12 months places Moly in a much stronger position when negotiating finance or negotiating a buy in of the project --- and possibly capitalising on the iron deposit should it be commercially attractive and more drilling results are available.
A major factor will be the decline in the Australian dollar. An interest rates cut will lower the value of Australian dollar.
THIS WILL MAKE OVERSEAS INVOLVEMENT OR FINANCING FROM OVERSEAS MUCH MORE VIABLE!!
Time to accumulate for those who have healthy hearts!
Hopefully the $150 million bridging loan will enable operations to continue for some time.
MOL Price at posting:
0.0¢ Sentiment: ST Buy Disclosure: Held
