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Cline Mining Corporation T.CMK



TSX:CMK - Post by User

Post by bond46on Feb 08, 2013 9:25am
344 Views
Post# 20957528

Dilution in the cards

Dilution in the cards

With the global economy improving, most likely there will be no sale of the company and dilution will become inevitable. In which case there is a possibility CMK may go into production end of 2nd callendar quarter and beginning of 3rd. This scenario of met coal rebounding in the 3rd quarter was expressed both by Teck Cominco and Arch Coal in their quarterly guidances. And as I mentioned in this board before, it's unlikely Bates and co would want the company sold at a time the met coal markets are pregnant with a rebound. And though the company has been put up for sale, my belief is that this is more of a public relations exercise rather than a real intent to sell the company. The best solution Bates and co would wish for would be a sales contract, joint venture or an offtake agreement rather than an outright sale. The question is, do they have the time to wait. I don't think so and thus dilution may become inevitable.

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