But of course.
I'm glad I only dipped in for 8K shares at 12c. But still...I am shocked to see them in administration. No matter which way you cut the pie, as Gavin Wendt says, if the company was telling us the truth, they should have their facility rolled over, or have attracted equity from a partner - OZL, Glencore, Xstrata, whoever. Convertible notes. Equity.
I think Brian Rear was just too much of an arrogant etc etc to capitulate on some of the terms of the lenders, or people who'd want to buy in to the project or the compny, and being an insufferably stuck-up intransigent self-important git, he turned it down and said "Stuff youse all. If I can't have it all, you all get nothing."
Something is fishy. Either the $1/lb operating cost was wrong, or there's someone fiddling something. And yet again, Macquarie comes out in the wash as a ender in charge of a failed mine. SoGs was a case in point.
And to those who say "CUO should have sold the hedges" I answer - if you owned the hedge commitments, would you pay them out or would you squat on them until the company went under, so your liability to buy copper off CUO at 2x market price evaporates? I know what I'd do if I was a lender with out of the money hedges - I'd refuse to accept terms, and avoid my hedge losses and secure my debt via administration.
CUO
copperco limited
