My Two Bits
posted on
Apr 11, 2009 08:23AM
Knowing y'all can't wait. First another bullet was dodged. More equity had to be raised instead of more debt. It will be interesting to see how the $30M will be spent. I can't see all the debt being paid off at once. Hopefully the hourly folk get their missing pay plus interest first. With todays nickel price will more nickel be stripped to pay off the Chinese? I estimate the shares outstanding, fully diluted will probably be shy of 200,000,000. Could we see a share consolidation over summer? Hopefully the US hedge fund will be patient and wait till November for their cash back. If all the nickel is going to the Chinese to pay back a loan, where will future revenue come from to pay all debtors? Hopefully Gary or the new management team there can lower the cost per pound to squeeze out some profit. Hopefully the Chinese are not here to just strip the ore then run. Or will they dilute shares further? IMO more than$30M will be required to get this project fully operational and free of liens. Stay tuned, the saga continues.