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> You've gotta bury that theory, no matter what the convenience...

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cabalaine

56 Posts.

28/01/15

17:31

Post #: 14654510
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Originally posted by G0rdonGekko ↑

Anyone think that the koolan island seawall damage might have just been a bit 'too' convenient in october for the company and its illustrious major shareholders?

At a time when Iron ore prices are at record lows, and ironically over a period when koolan island went quickly from a cash factory to a cash rainwater drain, Koolan suddenly has seawall damage that renders the whole operation unfeasible at current iron ore prices.

The question then goes was the seawall sabotaged?

There are many motives that the major shareholders might have in having koolan inoperable - noting that this was the last quarter that koolan was to ship RSP (Rizhao special product)

Firstly, since the major shareholders had offtake agreements in place for 80% of production for koolan but no offtake agreements for extension hill could this simply have been an excuse to pressure the board and management to negotiate some favourable offtake agreements for extension hill to replace 'lost' tonnage stemming from the termination of production from koolan? - noting that there have been no off take agreements for extension hill given to any of the major shareholders as per the annual report for 2014.

Secondly, if koolan ever comes back online then the major shareholders could have two sets of favourable off take agreements instead of just the one mine at koolan.

Thirdly and a more noble reason that benefits all of the company shareholders, is that by having koolan wound down, the cash balance could be largely preserved instead of having to plough cash back into a largely risky mine with high production costs and stripping ratios.

The whole timing of the decommissioning of the mine and the breach of the seawall just seems bloody suspicious.
Shouldn't the geotechnical engineers have known and taken further steps to shore up the seawall especially since koolan was the flagship mine for the whole company and could have produced ore at a total unit cost of near 8-10$ a tonne if the stripping and overburden had been removed over the next year or so? The company has no debt and has a big pile of cash so this should not have been such a big issue.

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> You've gotta bury that theory, no matter what the convenience of the collapse. You cannot do things like that with other parties involved - workers, tech staff. They'd bury you down the track.
Blasting below water level always brings with it interesting outcomes.

MGX Price at posting: 23.0¢ Sentiment: Hold Disclosure: Not Held
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