Can't work out what the problem is hereLooked at manganese...

Can't work out what the problem is here

Looked at manganese prices and they are supposed to steadily going up.
But the only thing I could find was the article below dated May 3.
http://metalsplace.com/metalsnews/?a=4896

It doesn't seem to be costs. Baxter has said the money from the convertible notes is to be used for the nickel project and exploration.

Kiernan could be selling more.

I can only think it must be tax selling.
But could be wrong.

Dimes for the nickel says ConsMin


Friday, June 02, 2006

CONSOLIDATED Minerals executive director Rodney Baxter says the $A70 million being raised from a convertible note issue is primarily earmarked to accelerate capital developments that are part of the company's ambitious nickel expansion.



He told MiningNews.net that production would be doubling to a rate of around 10,000 tonnes of contained nickel by the end of the year, as the company targets annual output of 20,000tpa in the next 2-3 years.

Some $40 million would be spent on the twin decline development concept at ConsMin's East Alpha mine, as well as $14 million on a ventilation shaft.

The rest of the cash will go towards exploration, including a focus on Titan Resources ground, with Titan currently the subject of a scrip takeover bid by ConsMin.

Baxter forecast cash operating costs of $3.50-to-$4 per pound at a nickel production rate of 10,000tpa. Nickel is currently fetching more than $US9/lb.

ConsMin also holds a major stake in emerging base metals producer Jabiru Metals.

JP Morgan is the lead manager (and underwriter) for the notes offering, with the debt/equity having a coupon rate of 6.5% and being convertible at a price of $2.65 before June 2011.

Shares in ConsMin were off 8c (3.9%) at $1.95 in morning trade. The stock has slid from over $4 per share last October on manganese price issues, and was at $2.73 last month when it upped its bid for Titan.