3 months after the $754 million raising at 48 cents a share, Southern Iron Ore mine was closed. The board has never come clean as to what the initial and ongoing costs were for this (remember they had signed 5 year take or pay haulage contracts which do not expire until June 2017. In the key risks and disadvantages section of the propects, no mention was made if the mine had to be closed what the costs would be (and they knew these figures). A vague comment was stated that if Iron Ore prices continued to fall, it would have a "material" effect on the financial position and balance sheet of the company. In February 2016, when the board reported to the market, they told us that if the iron ore price did not improve, the remaining Iron ore mine would have to be closed. The cost of this would be: A$350 million. I wonder how much of the $754 million capital raising went to pay for the closure costs of the SI ore mine (initial and ongoing) and how much went to pay down the debt level? The shareholders would like the directors (including former Chairman Peter Smedley) to come clean.
