RE:RE:I'm surprised that it hasn't tanked below $0.15You can be sure that all of Trevali's warts were known to Glencore in advance. The ultimate outcome will most likely depend upon how much Glencore needs Trevali's output to sustain their own businesses. In the end it will be a cost/benefit exercise for Glencore. I believe that collapse is inevitable and whatever crumbs remain will go back to Glencore.
kramaswamy wrote: My guess is - despite the market reaction - the news release was already known to enough of the people who matter, that the relevant negotiations are already ongoing. As per the release, if that weren't the case, they'd have already defaulted. Since there doesn't seem to be any announcement to that effect, I'm guessing we'll eventually hear about some other form of financing they secured.
That doesn't mean I think they're out of the water by any means. Right now they have exactly one operational mine, however, they are paying for three. Not a great equation if you ask me.