Glencore will not put in $200M and then close the mine. They could do that without putting the $200M in - which would, I think, be a better position for them. People paying marginally above the rights issue conversion - well it is not a bad punt for them as think the downside is probably limited. And last time Glencore underwrote a rights issue in Anaconda/Minara, the shares went up quite strongly as soon as the rights issue was concluded. I am unsure when the issue absolutely finishes, I am not going to buy any, but think they are a buy - even without looking at the fundamental operating concerns that must exist at Minara at the moment.
MRE Price at posting:
31.0¢ Sentiment: None Disclosure: Not Held
