The last of Shree

Shree Minerals’ problems are pretty evident from a glance at the 2014 financials issued late in September 2014.

Shree staggers

Winter is a wild and woolly time down the West Coast of Tasmania.

Even bleaker for those not getting paid as expected.

Shree Minerals announcement to ASX was a carefully worded attempt not to scare the horses too much.

Shree stated : “While the company believes recent iron ore price declines are not reflective of medium term fundamentals and expects demand to continue to grow in the Asian markets, it is taking steps to optimise costs in the prevailing market conditions.”

Essentially what they’re saying is they’ll be able to pay their way if prices pick up.

Other than announcing they’d struck gold with another source of funds that’s all they could have said.

Apart from shareholders, working capital has been provided by Frost Global who have agreed to advance working capital to be repaid at the rate of US$500,000 each time Frost Global receives a shipload of ore

The last thing Shree, or Frost Global would want right now is an insolvency administration taken over by the creditors.

Shree: Another mining accident waiting to happen?

 

  

The almost daily reports about falling iron ore prices and the chatter about the effects on junior miners has shone the spotlight on Shree Minerals’ Nelson Bay River iron ore mine on Tasmania’s West Coast, as it battles to stay afloat.

Trying to understand what’s happening is best with knowledge of Shree’s recent history.