Lets face it, with the rabid environmental opposition that is...

Lets face it, with the rabid environmental opposition that is just itching for a fight getting rid of Hume for $10m in cash is great news. Had no hope for a Hume sale.

ALSO as part of the consideration for Hume we are cancelling POSCO's shares equal to 13.25% of the register (i.e. our shares are now, technically, worth 13.25% more given everyones proportionate interest in the company has gone up). Think this is a smart move (i.e. opposite of dilution). It will soften the blow of any capital raising that could be done down the track by minising dilutionary impacts.

Further, the "non-binding" Letter of Intent from POSCO to buy 1mt of Baralaba expansion coal shows strategic investors who want the product are still wanting the product. Seems to me the rumours of the death of met coal are greatly greatly exagerated. The viability of the project to me must be improved by an offtake (although as we know with Koreans it doesnt matter till they sign the damn contract).

On the flip side, $10m is still only 10% of the $100m needed. And POSCO are now off the register and so cant be a potential white knight. Also, the Funding update specifically removed this phrase "including selling a partial interest in the Baralaba Expansion" compared to previous updates. I hope this isnt a sign that JFE Shoji talks are now dead.

So still waiting for the big announcement, but good development today.

Holding nervously.