CBH had $125M at 30 June, now $60M and falling fast (over $60M gone in 5 months). At this rate they are broke in 5 months!!!! Sadly for all of us I can't see Zinc prices turning around that much that quickly.
Quick check of the markets the Chinese group's market cap is A$1.9 Billion. By contracst CBH is around A$30 million.
I think I would prefer the security of a A$1.9 billion company over a heavily debt laden, loss making A$30 million company if I was a PEM shareholder.
Understand the difference between 50% and 30% but holding almost 30% of the equity and almost 50% of the debt of a company buys you a hell of a lot of control. You could say we are trading with the consent of our creditors at this point
PEM Price at posting:
15.3¢ Sentiment: None Disclosure: Not Held
