FAS 0.00% 0.4¢ fairstar resources limited

To be honest I wouldn't care at this stage whether Patrick Teo...

  1. 2,159 Posts.
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    To be honest I wouldn't care at this stage whether Patrick Teo gets 20% of the company as long as we get away with funding. I think any lender will lend to a 20% Patrick Teo owned/controlled company they won't lend to FAS by itself with the A team's track record... It's highway robbery but that's what happens when the MD tries to be too cute securing finance over 3 years.

    I'm of the opinion the EGM is a complete waste of time without voting for boardroom changes but if Teo gets funding there's no way himself or an creafin associate wont be appointed to FAS board, probably as Chairman plus a non executive director essentially meaning those that secured funding will ensure FAS exercises tight financial control until it is paid back.

    If your going to vote anyone out without jeopardising the Creafin deal it would have to be carefully considered or else raise the constitution to 5 directors and appoint a NED.

    All is not lost for FAS they will still be profitable at $92 a ton but they might want to rethink the staged start 1mt is not viable @$30a ton profit when you have to repay $400m you want to get to 3mt -5mt ASAP.

    The MUIOF is dead in the water IMO but FAS is one of the companies with a low cost channel resource near a railway line that should be able to get up and running. It's disappointing that they wasted years of boom time but a tough environment sorts out the realistic starters from the hopeful starters. There's no way any of the other iron ore minnows can be cost competitive hopefully the government realises this and pulls their finger out.
 
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Currently unlisted public company.

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