re: Ann: Chinese Mining Fund Signs MoU for St... I agree with...

re: Ann: Chinese Mining Fund Signs MoU for St... I agree with you Wilb .. this seems to be a raw deal on the face of it ... seems they have given away 50% of money made for $35mil (plus the new Chinese mob will own 10% of the company) when on our fairly rough figuress show the project would have made that in profit in 10 months full operation at current market prices.

It is hard to fathom how management could have seen this as the best possible deal.
There are other options than getting the Chinese involved. They obviously want an influence on the supply side of the market, but they should have to pay for it! and not get it so damn cheap as they have here. We are just giving the power to them. They will continue to do it and in 10-15 years they wil control the supply side of the market as much as they do the demand side. It will be interesting to see how things unfold...

IFE could have got banks involved for debt, in combination with a share issue, not uncommon. They could have, as they said they would get the contractors to fund the mine development and offer them far more agreeable terms for IFE shareholders.
The management has been crowing about this ore being some of the best in the world, yet they are selling off the project for nothing! Go into these negs with some NPV figures and say if you want 50% you pay half the NPV, or we'll give you a discount you can pay 40% because we like you ... that'll be $200mil thanks very much!!