From The West Australian:
Atlas Iron managing director David Flanagan says he believes shareholders will overwhelmingly approve the iron ore miner’s company-saving capital raising at tomorrow’s shareholder meeting.
…Despite the 5c-a-share issue being significantly dilutive to Atlas’ 34,000 existing shareholders, Mr Flanagan said that shareholder proxy votes lodged so far were running strongly in favour of approving the $180 million capital raising.
While Mr Flanagan would not be drawn on the response to the capital raising so far, he said he believed Atlas would raise far more than the $43 million worth of contractor shares on issue.
More from The Australian:
“If the iron ore price goes to $46 a tonne and it stays there for two months it won’t affect the cash flow in our business because we will have we pre-sold iron ore for at least the next thee months but up to six months,” Mr Flanagan told a mining conference in Perth on Wednesday.
Looks like China trying to keep it alive but I’ve had to coin a new term for this “rescuicide” as Atlas’ success can only contribute to its own death as a high cost producer in an oversupplied market.
