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You can’t believe what anyone just types
Thomas, how do you know mining has ceased?
Mining has ceased at Ben's Creek, within days the company's assets will be Avani's and Ben will go into administration.
Met B $190
B3; Think you should take off those stark black and white glasses ,and resign your armchair CEO 's job .
Fromage play the ball mate not the man, Life's too short to bother with puerile half- witticisms.
I don't have a "book" rpg7, but it's clear you do.
I comment because I have followed the share since IPO, and it's an interesting case study in hubris turning to reality. And yes, maybe there's part of me that thinks it's a bit of public service to counter some of the laughably optimistic rose tinted views with a dose of cold hard reality.
The company is loss making. It's always been loss making otherwise they wouldn't have needed loans to keep going. It's now even more heavily loss making with a millstone of very expensive debt that also has conditions attached which means BEN cannot be cash generative whilst that debt exists, regardless of what happens to coal prices. The company is therefore now locked into a debt spiral and at some point the white flag will have to go up, shareholders will be rinsed and Avani get the mine.
There is no doubt here about the eventual outcome, it's just a matter of when.
I was not aware of a need to own shares to take part in a forum. Counterarguments and alternative opinions may help a newcomer make a decision as to whether this share is the bargain of the century, as (we long know) RNSs are not the whole story. Personally, I keep an eye on past mistakes in general, and here to discover out of idle curiosity if RPG7 ever sees the light, or if Penfold's grandmother has disinherited him.
B3; You claim that you have made your money on this share earlier and now just a casual observer . If you don't have any money in this share why do you continually post deleterious remarks about the share ? Is it to 'help' others or just talking your book.
JH we hear you. I don't know why you feel the need to keep coming back and saying the same thing. You're clearly not invested so gloating? Shorting? Trolling? Whichever, its unnecessary and unpleasant.
At 50K BEN are breakeven at $205 ( all in)
At $193 well you can do the maths
I got the impression from the last few vid's A.W did that $120/T net to BEN wold cover costs if/when they produce a regular 50K short tonnes/month?
Economies of scale and all that.
Was that 80%, or did you mean 98%?
What other reason is there for a low trading volume and record low price other than investors can see this as an utter basket case with no plausible investment proposition?
'Because nobody wants them', so you are speaking on behalf of the vast majority of shareholders then?. Or could it be that it suits your book at the moment .
Because nobody wants to buy them and many holders have seen 80% of their value evaporate so might as well hold on and hope for a miracle?
Mick. The issue is the $120 doesn't cover cost of production. So the company is locked in a debt spiral regardless of coal price. They will run out of cash again very soon. Then what?
There are just shy of 400 million shares in this company, how many have been traded in the last 3 days? Vast majority have not been traded -why is that?
Production is set to get a massive boost - all things being equal this should average down the average cost of sales…… therefore I am expecting some positivity and SP growth as the year progresses. Mind you I’ve been wrong before!!! Lol gla
I imagine steel production will slump in the States considering there is a war between russia and Ukraine, China sabre rattling with regard to Taiwan ,North Korea threatening to go to war with South Korea .Russia sniffing around other Baltic countries , Israel at war with Iranian proxies. Haiti kicking off. If by some mischance the orange chump gets elected in November he's threatened to pursue isolationist policies which will embolden russia ,China and North Korea. Even the orange dumbbell will join in the arms race Think more steel will be needed.
What are you guys on about? If prices go up, then yes you are right BC only get $120 - but the balance is still "PROFIT" except it is used to pay off debt. Nothing wrong with that is there?
This was always a commodity play. Met coal pricing have slumped - If they recover, BC will recover. If they don't, neither will BC.
Bigbadbob79
"even if coal prices doubled overnight the company would not benefit". Exactly. Nail in the coffin. It is now locked in on low prices in order to keep the lights on and get loan for working capitol. There is no a going concern issues. The money is just for working capital and for keeping production high and for selling coal at below production cost. There is no longer business here. It happens a lot in the recourses sector and it was how BEN was born and brought out of mothball. It is now heading back there. When the agreements are filled there is nothing less and no business. No one will ever buy the shares or could they issue more shares. Its lights out time.
Correct sushi.
In fact even if coal prices doubled overnight the company would not benefit as everything over $120 has to go to pay off the principal on the Avani loan. $120 doesn't cover operating costs, so even if they pay off some loan, they will have to go cap in hand to Avani for more expensive debt to keep the lights on.
There'll be no bottom feeders here, there's nothing to feed on!
Enter the bottom feeders.
The company is now locked into what looks like contracts that are not profitable for the company. When prices do eventually turn they will still be selling large quantities at lower prices not beneficial to the company and with maximum output they have no room to produce more coal that they can profit from. The company is basically finished. Lots of people were trapped into buying here with promises of huge profits. There never will be profits. When resources prices it fall it has devastating affects on a company and often gets them all mothballed until prices turn and some bright spark buys a company from the administrators. Same thing here is destined. Its mothball and administration. It costs more to produce than what is received. There is no longer a viable business here.