Hav'nt posted for a while, have been away. Am still stunned by the falling over of CUO. Hard to believe they ran out of money. Looks like they may have been caught out the same way MRX was. Copper price dropped after the forward payments by Glencore and they cashed the money ( which was paid in US dollars). Then probably spending it on the upgrading taking a risk on copper price rebounding. Glencore asks for the extra money back but in meantime aussie dollar dropped and they need to pay back in US dollars making it much worse??? But would have thought they would not be effected that much due to hedging which should have covered production costs and servicing the debt. Also would have thought they would have known they may have to repay Glencore money and would be prepared???
Does anyone know how much Glencore was needing to be paid back? Does anyone know if they are still mining, assume they are still running EW plant and producing Copper.
Hopefully the full story comes out next week and some resolution which preserves shareholders investments can be worked out.
Cheers Fero
CUO Price at posting:
5.0¢ Sentiment: None Disclosure: Held
