With the decline in commodity prices and stockist wary of holding higher cost stocks (read as better management of stock covered here quite a few times), are KMR (Kenmare Resources) not at risk of a severely discounted sale in the waiting with the financial leverage now having greater risk.
Iluka Resources could in essence end up with the asset for very little equity cost (if at all) and just take on the debt. The debt-holders I'm sure hold the balance or tipping point here. Having not covered or researched this stock properly since closing the shorts, it's just a thought. Over to the man from the Pru!
Just a thought...
Atb Fraser
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