Your comments about shareholders doing nothing for the Company is a bit unfair.
Lets go back to late 2007 early 2008, they could have raised the money to bring this mine into production. But Fischer thought that is was too expensive, mistake, why try and start a 20mta mine when it could have started at 10mta and at half the cost, mistake, ordered long lead equipment before full finance, mistake, had to take a loan to pay for this equipment at 20%, mistake.
The Iron Ore is our saving grace, the Company announce they are going to raise cash to bring on the Iron Ore, they also do a deal with TCW re the loan. Fischer tells the world that the raising of cash was to get the monkey off our back, and that he hoped that the issue of new shares to sophisticated investors and a SSP could pay off TCW. At that time the share price was holding up well, ask yourself why.
Low and behold we have a stragic partner, who will if FIRB agree will hold 55% of the Company. Now we must ask ourselves what chance have Hanglong of getting approval, and will they be happy to have 49.9% if that is what FIRB have said they would be happy to approve in statements of late regarding Chinese investment. This to me is a huge gamble on the Boards part, and its showing in the S/P having said that the S/P will sky rocket like MOL does on any good news. Lets hope that FIRB see that this is MOL only chance at this time to bring on this resource which by the time the mine is completed will be back in demand.
MOL Price at posting:
91.5¢ Sentiment: None Disclosure: Held
