For the record, I don't think the raising will be done at 35c. They did however sign the mou when the stock was at 14c so even though the price has been hit down to 10c, it is not too far off then. I ask the question why on earth they did the MOU back then in the first place - why not 20c? I would not want them to burn through their cash because then we're really stuffed and have to dilute at these levels. Management clearly do not like dilution - it is clear as day and hence the loan. It may be like SDL (for anyone familiar with that stock), they keep promising cash is a month or so away yet never is. These things can drag on forever and a day. I get the impression that Chinese banks are never in a rush.
At a guess gmc, I'd say that they are thinking ahead. Back in prospectus days, they just wanted to produce magnesium. They now want to do the full alloy (is that right?). So maybe they're looking two steps ahead and going for the jugular. I have no idea.
Due diligance on ferosilican plant?? No idea on this one mate and good point. Maybe the economies are line ball. Someone want to ring them? I may when I have time.
CMC Price at posting:
10.0¢ Sentiment: None Disclosure: Held
