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Message: The downside of the Santa trade - RDA.v

Woke up to this news from RDA:

"The company does not currently have positive cash flow to meet its continuing operational requirements, and debt service and repayment obligations, and requires a combination of additional financing and a restructuring of its existing debt structure to enable it to continue its operations. In addition, price realizations from coal sales have been adversely affected by recent weak thermal coal prices. While the company is actively pursuing other sources of funds that may be available to finance such needs, additional financing may not be available to it or, even if available, the terms of such financing might not be favourable to the company and might involve substantial dilution to existing shareholders. If the company fails to raise additional funds and restructure its existing debt, it is doubtful that it will be able to continue as a going concern."

Ya win some, ya lose some - that's why I always buy a large basket of these things.


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