BBB, Why would you bid with historical cash burn, coal prices...

BBB,

Why would you bid with historical cash burn, coal prices wallowing at the lows and strike problems in SA.

On the contrary, that's EXACTLY when I'd be bidding. Get a distressed asset in a cyclical low.

There is nothing wrong with the assets themselves. Ferr is mined out but Vlak is a profitable domestic mine and Pen will be a profitable export mine. The other assets have value as well.

The reason CCC is distressed is a) the temporarily poor coal market and b) the poor management and massive ancillary costs of such an inefficient company.

A company that is competent, streamlined, efficient and waits for the coal market to pick up could make the CCL business nicely profitable IMO. If you could get it for a lowball offer while CCC is distressed, you'd have to seriously consider it.

Surely if nothing else, there would be a couple of bids that were little short of downright predatory...