Hi All,Having slept on yesterdays calamity, I can't get my head...

Hi All,

Having slept on yesterdays calamity, I can't get my head around why MBN management would tell the market they are intending to increase capex, while running at a loss & burning through the cash. Just doesn't make sense.

The nickel price is rock bottom. Not their fault. Have supply contracts (1 now) in place, so have to supply or be sued for damages. Can't be helped. Though if 2nd supplier has little or no profit margin on the value added product, then any subsequent loss from MBN not supplying would have to be minimal, imo. Supply is not constrained, get it from somewhere else.

But why tell the market you are committing financial suicide? Why the break or break through mentality?

It's in managements best interests to preserve capital as long as possible, so they can continue to draw salaries. Crash & burn it & they don't have a job.

Are they bringing in a new substantial holder at a huge discount? That would probably result in a change of control and probably new management.

Just doesn't make sense.

Are they blazing ahead expecting an immediate reversal in the nickel price? Why tell us analysts think low prices will persist through 2014?

Why even mention 2014 capex? It has no real relevance to the change at hand, a customer pulling out.

Why deliberately put the fear of God into shareholders??

Dankhom you have confidence in management. Why?

Thoughts people?