With no buyers (unsurprisingly), sellers who can see the writing on the wall have to take whatever they can get. A capitulation at 9 cents today means the next offer is just 3 cents. Clearly this stock is going nowhere.
1. The mine cannot be built with the iron ore price collapsing as it is,
2. the feasibility study is now out of date and not worth the paper it is written on,
3. financing is a pipe dream and
4. even an operating profit is debatable now, let alone any capacity to repay massive capital costs.
So why on earth is management continuing to spend shareholders funds? Maybe it's because they enjoy the privileges that come with their employment contracts? If an established company like Atlas Iron can't make it in the Pilbara, how can this start-up?
The time has come to recognise current realities - mothball this project and return the remaining money to shareholders before it is all gone!
IRD Price at posting:
9.0¢ Sentiment: Sell Disclosure: Not Held
