I think everybody agrees that Royal need a partner otherwise the shares price may continue to drop if they continue with their big CAPEX development at RBR.
The problem is that the only partners in town seem to be Chinese and they have to decide whether they want to risk another Billions in CAPEX in this projects or a multitude of others.
In an article Battered Iron Ore Miners - Buy or Sell?
"Morgan Stanley is predicting 300 million tonnes of oversupply by 2018, based on demand forecasts."
With such an oversupply looming why would a partner want to buy into Royal at this time.
What I believe Royal management need to do is change direction, conserve their cash, fire certain parties and look to start small where the CAPEX is going to be much lower and where this CAPEX could be sourced elsewhere.
MFE Price at posting:
3.0¢ Sentiment: None Disclosure: Not Held
