There is lots happening on the global finance front. So hopefully banks will resume lending again shortly and this will enable ADY to refiance its existing loans and obtain capex funds to expand its iron ore production and shipping capacity.
ADY will sell two iron ore shipments by November and this should give them a cash buffer. Claims by downramping posters that ady will be put into liquidation if they do not repay loans by the end of this month are utter nonsense. Anyone, should ask ady about that if they do not believe me.
Personally, I think the iron ore backlog in china is caused by the Olympics shut down of the steel mills. I reckon those stockpiles will be consumed quickly and China will resume it enormous consumption of iron ore again.
But a slowdown in iron ore delivery could be to ady's advantage. This is because it will free up the ports and could enable ady to lock in to 1mtpa shipping capacity at one of the ports near to their their mine. This will enable the ADY-WISCO JV to proceed which requires 1mtpa shipping capacity.
ADY Price at posting:
3.7¢ Sentiment: Buy Disclosure: Held
