Re Wayne perhaps you should cut him some slack eveything he has said he will do he has. He is moving BRM from explorer to producer. Im not happy about share price but in this market any good announcement is not going to change things. Cash is king. Imagine where we would be if he had not got the cash at 2.50 per share.
IMO A lot of projects will not get up in then foreseable future - no cash. Even fortescue (see below) has acknowledged that it will probably not met the 160 million ton expansion. Will make 80 million self funded. There is another 80 million tons not coming online as was expected. Other Iron ore companies that were planning to be exporting either cant find finance or are considering whether at the moment to risk the investment. i.e is China going to tank.
Anybody coming to the resue with cash at the moment wants their pound of flesh and then double it.
Chinese they will want their price. It was reason FMG almost never got off the ground Chinese didn't want to pay price or wanted majority control. see old announcements re Noble group.
BHP trying to take over RIO interesting times if successful - what will it have to give up. However if not successfull has money and a number of proven up iron ore resources right next to its railway lines. What will it do?
Quote from bloomberg
Re FMG
`Given the current financial markets the first bite out of that has to be one we can manage out of cash flow,'' Rowley said. ``If you are trying to ask me how I am going to get to 160 (million tons) right now I have to say that is a little bit uncertain because that's the way the market is.''
Australian mining companies are seeking A$26 billion to build projects as the worst credit crisis since the Great Depression tightens debt markets and raises borrowing costs. Fortescue's mine is estimated to return ``free cash flow'' of A$5 billion a year once output reaches 80 million tons, Chief Executive Officer Andrew Forrest said last month.
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