I see WPG planning to export 3.3mtpa DSO from end of 2011 has raised $75M by a share issue, effectively doubling the number of shares on issue as well as a debt agreement for a further $120M with a bank. Total capex including the port $168M. This $75M raising is about the same as it market cap today with the shares down 18% on the news.
Their cash margin is $A61/t including royalties, cash opex to FOB incl. royalties is $72/t, price based on $US150/t CNF. Sea freight to China from Cape size vessels is $17/t to North Asia
By contrast IFE has a much lighter capex requirement that will hopefully be able to be funded in the main by a rights issue plus bank debt, to minimise dilution, rather than bringing in new investors at a discounted share price.
TYX Price at posting:
90.9¢ Sentiment: Hold Disclosure: Held
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