Ha ha , have to laugh hard at this thread header U ---------------------------------------------------------- Tinkler's achievements are noteworthy if only because, for a coal baron, he has not sold a tonne of coal from a working mine. In fact, few of his business interests - from infrastructure and property development to thoroughbreds and football - generate cash flow.
The pressure to keep one step ahead of the bankers is a powerful motivation.
Companies in the resources sector, which borrow large amounts to fund their projects, will struggle to repay their debt if commodity prices fall, he said.
“Commodities tend to be capital intensive and based on a long term business model. There has been a huge amount of additional investment in commodities sector since 2008 on the assumption that higher commodity prices would be sustainable,” Gambles said.
“Any reduction in commodity prices is going to devastate these companies…it doesn’t take a big change in commodity price or demand to destroy the viability of new projects,” he added.
http://www.cnbc.com/id/47290031/
CWK Price at posting:
82.5¢ Sentiment: LT Buy Disclosure: Held
