A merger with the nearby graphite companies seems remote to me as their balance sheets are bare bones and share prices unable to sustain a CR. A more likely possibility is that the company goes broke, share holders get a few cents a share and the mine and plant become a private company. That is what it would take for for a new owner in compensation for the very high risk of putting up an estimated $40m just in the next 12 months (that's the company's figure)? Perhaps private equity will move on it, dodgy up the production/ sales figures and float it, just like Dick Smith and Spotless. An advantage for them is they could keep the same management, perhaps reinstate CD as he seems to have the right skills for hyping value.
VXL Price at posting:
11.5¢ Sentiment: Sell Disclosure: Not Held
