The morning post:
Preston Bulong has had $185 million in senior debt due 2008, downgraded by Moody's, affirmed as B by S&P, but outlook by S&P changed from stable to negative. "The project has experienced start up delays and problems which are not unexpected in a mining operation using new technologies, however these have weakened its flexibility to deal with future delays or unexpected costs."
Cawse looking for a partner to raise $1 bil Oz to fund expansion.
Billiton/QNI looking for ni ore for it's Queensland smelter, so apparently South Pacific (Phillipines, New Caledonia) supply iffy (not to mention Queensland).
Ni inventories below 49 kt in London.
I am suffering from such a case of cognitive dissonance that I think I should give up, have some electroconvulsant therapy and get a lifetime supply of paxil.
All 3 Oz projects are overdue and overcost and as a result have ratings downgrades, eg, increased cost of capital [as if 12.5% wasn't bad enough]. The solution? Borrow 3-4 times as much for phase II projects, finance by selling your power plant.
Even the big Canadian banks starting to decrease VB projections. Ni shortage seems to be worsening, Billiton/QNI looking for ore and CMR seems to be sitting on a modest North American Ni body (if not 1 modest and 1 big) and modest financing requirements hung up. [Dave, while I realize you would like to hold the ECT paddles for me, my guess is that they announce partial funding and complete refinery deal this fall]
These are the times that try men's [bulls] souls. |
