black kite18 Dec 2013 09:36
One of the few whove posted a few facts in amongst the pages of rubbish here.
Lets get things clear. 1.5 billion in debt, loss making. this can go 50? % down from her and 100% up. No one knows as its a bet/gamble. The company have permission to" restructure" and now have nyrstar back aboard as the major creditor. There is no guarantee restructuring will be fully successful but at least they have permission to try and climb out of the hole they are in.
So all those shouting 30p 50p even, how on earth anyone can see this having a mcap of 300million or a billion, when any potential mining will be a fraction of the production volumes Taalv had when operations were at max capacity. Staff have been thinned out, same issues apply, gypsum ponds and the flowsheet for production which is probably being reassessed, to improve the model on the previous flow sheet, treatments etc.
Note the co is already trading between 100 and 190 million market cap which is incredible considering they are on life support and still might get liquidated, be it next few days, months etc.
The insti investors, the gov pension pots? whos going to take up the slack from those who have run for the hills?
surely this is a punt? bet/gamble on survival? trade the swings. Todays drop some might say is recent highs were already priced into the restructuring, now the profit takers, and those realising how deep the issues go. Whats fixed? costs? cash burn? the process is the same, still loss making. importantly if?? taalv get restructed and it gets fully approved, wheres the funds going to come from? dilution? bonds/placings/finance? who's going to lend mega bucks to a loss making mining operation?
cant see the gov bailing them out after already losing a huge % of the gov pension pot. The current police investigation into allegations about the permitting grants previously? wheres the sugar daddy to actually provide the funds? and what of all the creditors, local businesses and suppliers who have already been shafted and not paid for their services? the ones that couldnt afford to work for nothing? the ones who invoiced the co and waited for months to be paid. never got a penny. you think they will turn up and provide services again with 30 day invoices? not a chance.
Any of you ever supplied services to a co, that went bust? did a CVA then rebirthed? once bitten twice shy? or this time all invoices strictly paid on time? that will hurt a restructured Taalv cashflow.?
If Taalv can survive it will be a slow, careful ramp up in production where profitablitiy is a must otherwise why restruture. cant be done if all variations are shown to be loss making.
So how the hell can they show a viable business proposition? price of zinc and nickel right now…. are they good enough for forward selling to Nyrstar and the like to keep Taalv in profit.???
Anyone here got the answers to any of this? or will we get one line grunts of imaginary prices of the sp??