RE: reason for the bought deal... They say that a picture is worth a thousand words....well, take a look and see what you see? Until this picture looks alot different I think in time we might be grateful in Farhad's decision to take the $20 m bought deal now... If the global markets turn down and global banks seize up lending...well...you get the picture...It appears that the Chinese Market is the one poised to be the big winner long term...“the biggest misconception” about China is that it will be adversely affected by a slow down in imports in a downward global market...the truth is that China "The world’s second-largest economy is actually largely driven by domestic consumption from a population more than one billion strong..."
Three trips to Asia in the last 12 months...meetings with "strategics"... and no news yet...hmmmm What the table below tells me is that "it appears that "money grows on trees...but in the end the piper(s) will be paid...I think those that are going to not only "survive...but thrive"...are those that have figured out that being the lowest cost producer, securing long term contracts for debt financing and off takes for production will, in the end clearly show which is "best in class" ...a bird in the hand is worth two in the bush...until this picture says otherwise...Farhad was prudent and conservative in my opinion.
Super cycle of growth across emerging markets bodes well for natural resources
The overwhelming debt burden in developed countries translates to an expected slowdown in imports from the emerging world. However, the grandest of those, China, likely won’t be as affected as much as some people assume. This is “the biggest misconception” about the country’s economy, says CLSA’s Andy Rothman. Exports only play a supporting role for the Chinese economy. The world’s second-largest economy is actually largely driven by domestic consumption from a population more than one billion strong with more padding in their wallets.
The situation is quite somber when you consider how much debt Europe, Japan and U.S. owes this year alone, says global macro research provider Greg Weldon. In his preview of 2012, Weldon says that the maturing principal and interest on U.S. Treasury debt due this year totals just under $3 trillion. Austria, Belgium, France, Germany, Italy, Portugal and Spain together face nearly $2 trillion in principal and interest payments. Japan, is the leader in the clubhouse, owing just over $3 trillion in 2012. With the combined debt for these developed countries totaling nearly $8 trillion, the interest payments alone dwarf the total GDP of many countries in the world.