Well this isn't good news in my eyes, though I can understand...

Well this isn't good news in my eyes, though I can understand why.

With Nickel prices as low as they are it isn't worth proceeding with projects where the return isn't going to be that good.

Wonder if they will still do copper production though?

Sounds like from their new announcement they are going to be focused on exploration, which in my eyes means a couple of things:
1. Prospects of further share dilution as the 'cash' they require will have to come from Share Issues, not sales
2. More shares to the Chinese possibly for their 'green-fields' exploration support.
3. The fact that the Chinese support it also a good thing.

I'm weary every time I see Greenfields support as this seems just another way that the Chinese can get more control of a company without breaching the foreign investment rules.

I wonder how it is shown on the books of the company - is it a loan?

Alot of issues going to be raised by this 2 page announcement as well as more questions.

I personally don't like it, and looks like the market didn't either! Steady decline over the last week, probably due to the slow-down of economies and possible reduced demand for Iron Ore (maybe the price will come down too - with competition coming into play).

Anyone else got opinion on this?