He is just an former executive for the WA, SA, NT M&A markets from CBA. Now he is CFO for OPR. What does that got to do with anything?
I presume Mitsubishi executives, now in Beijing, aren't just begging for money. They obviously in Beijing to get some deal done. Esp if Mitsubishi wants to sell some or all their 50% of OPR.
Plus if everyone takes time reading the news, China is tackling with hot money (same with Brazil and India), thus they are tackling inflation. Since the start of the year, China's central bank had raised interest rates up 3 times already. All China's banks now have a higher requirement to park more money with the Central Bank. This is to take out unneeded liquidity to rein in inflation. If Mitsubishi wanted to borrow from Chinese banks it would be equally hard as domestic banks. Plus interest repayments would be higher than if they were to borrow from Japanese banks (near zero interest rate). The Japanese govt and central has injected more liquidity $US300b in their credit market. Mitsubishi don't need to go Beijing to talk with Chinese banks.
With their internal problems, I'm sure they would want to sell some stake if not all. At least this would reduce pressure on their bill, if the total cost for OPR goes ballistic.
Say in Sinosteel's position, why would you need to get into MMX, when you can get into OPR direct. If anyone has the closest information to what's happening, that would be Colin Barnett.
Given NSW is in election mode, both candidates aren't what I'm looking for. I would definitely vote for someone like Colin Barnett to run NSW.
MMX Price at posting:
$1.06 Sentiment: Buy Disclosure: Not Held
