Good Morning,
Despite the obvious being ignored by 'some', Atlas Iron shares have been suspended. Simply put, Atlas's bondholders are now sifting through the pieces in order to attempt to recover some of their monies. In the absence of an unlikely sale, a willing investor (possibly Chinese) and some sympathetic bondholders, there's almost zero equity left in the company for shareholders.
If parties (Australian readers) are unsure of the process, one would be wise to read up on Afren, African Minerals et al for the outcome that has been obvious for a significant lengths of time. Put quite simply, Atlas Iron produce / mine iron ore, the price is in the crapper, with a reduction in fuel costs giving a glimmer of hope. Atlas Iron have suffered via detrimental (but obvious) currency depreciation against the dollar, the iron ore price falling a further 25%+ and now the headwind is untenable.
The management and company to their credit have done their best with what they had. Although if one was to use the phrase a presentation phrase I coined awhile back, Atlas had entered the Formula One championships, in a Ford Fiesta. We'll ignore the analyst's comments inferring the EMC (*and Li) did not know what we're talking about, and stick with the facts.
Any royalty or taxation reduction proposed by Australia are unlikely to be able to save the shareholders, perhaps bond holders, but shareholders are now wiped out. One envisages Atlas being a long-term care and maintenance/mothball until such time as prices recover (consistently above $60/t).
Amara Mining 2014 full year results were out today. Contrary to some coverage, they were not in line with expectations, spending circa £1M more than guidance, although immaterial to the grand scheme of things. Yaoure is the only way forward, with the Pre-feasibility Study (PFS) due May/June (*from memory this is a delay), one expects some rubber stamping and no surprises. Randgold best get their finger out, or they could find themselves missing out!
Kefi, keeps spinning those plates, update at hawiah Saudi Arabia. One wonders if they would be better off focusing on Tulu Kapi and conduct the bare minimum of works on other licenses unless incentivised by another 'well-wisher' (read as funder).
Oil 'steady' as she goes, with some short-term recovery and narrow of the WTI / Brent spread (gap). It would be rude not to acknowledge some decent work by Goldman Sachs on the long-term outlook for Oil, lower for longer, although their price expectations are like darts in the dark!
Atb Fraser
The management and company to their credit have done their best with what they had. Although if one was to use the phrase a presentation phrase I coined awhile back, Atlas had entered the Formula One championships, in a Ford Fiesta. We'll ignore the analyst's comments inferring the EMC (*and Li) did not know what we're talking about, and stick with the facts.
Any royalty or taxation reduction proposed by Australia are unlikely to be able to save the shareholders, perhaps bond holders, but shareholders are now wiped out. One envisages Atlas being a long-term care and maintenance/mothball until such time as prices recover (consistently above $60/t).
Amara Mining 2014 full year results were out today. Contrary to some coverage, they were not in line with expectations, spending circa £1M more than guidance, although immaterial to the grand scheme of things. Yaoure is the only way forward, with the Pre-feasibility Study (PFS) due May/June (*from memory this is a delay), one expects some rubber stamping and no surprises. Randgold best get their finger out, or they could find themselves missing out!
Kefi, keeps spinning those plates, update at hawiah Saudi Arabia. One wonders if they would be better off focusing on Tulu Kapi and conduct the bare minimum of works on other licenses unless incentivised by another 'well-wisher' (read as funder).
Oil 'steady' as she goes, with some short-term recovery and narrow of the WTI / Brent spread (gap). It would be rude not to acknowledge some decent work by Goldman Sachs on the long-term outlook for Oil, lower for longer, although their price expectations are like darts in the dark!
Atb Fraser
