GREY:ADEXF - Post by User
Post by
Greenandgold.on Oct 30, 2011 9:56am
250 Views
Post# 19193355
XinXing's size
XinXing's sizeXinXing's not that big a company, with a market cap of only US $2.48 billion. Compare with some of the other steelmakers making international investments in iron ore:
*
Wuhan Iron and Steel: US $5.5 billion
Tata Steel: US $8.9 billion
Cliffs: US $10.63 billion
Baosteel: US $14.7 billion
*
Now XinXing's slowness to close the deal makes sense. They are not a huge company, they haven't made this kind of deal before (direct investment in a foreign miner), and US $50 million isn't chump change. And XinXing isn't pulling a billion out of its coffers to finance Roche Bay's capex--they don't have that kind of money--they will make best efforts to seek debt financing for Roche Bay, that's the deal.