Bryan Green, former Deputy Premier; now Opposition Leader, and Shree’s Sanjay Loyalka ...
Indian mining wannabee Shree released its quarterly report late yesterday ... and nobody will be surprised to hear the news isn’t pretty.
Having been forced to finally admit mining had been suspended in June, Shree has now published data which shows a good chunk of the easily accessible iron ore has now been dug up, shipped to Burnie and sold at a loss, with no money left over to look for more reserves.
In short, had Shree conducted a comprehensive feasibility study prior to spruiking a 30-year mine life and gazillions of jobs for locals, it would have quickly established the business plan had more holes than the Costa Concordia.
The business plan was a doozy and could have been entered in a comedic writing competition. Sadly ordinary investors (and more than a handful of politicians) thought the concept of making a lot of money, then using it to make more money, was legitimate, not just an amateurish attempt to keep a couple of Directors employed.
Shree has $2 million left in cash after exhausting most of its goodwill with lenders. In a few weeks, we’ll find out whether the company’s auditors feel that money should be used to pay back some of the creditors, and conduct an orderly windup of of affairs.
A more likely scenario will see outgoings wiping out the bank account by the end of the next quarter.
Then we’ll hear the accusations that if Greenies hadn’t delayed the opening of the quarry by a few weeks, Sanjay and his friends would be drinking Bollinger in some Perth restaurant, and the shareholders would be ordering new sports cars from Ingolstadt.
At least there’s a remediation bond lodged with the State Government (well I hope it is).
I’ll leave it to far more qualified people to decide how far that will go in fixing a hole in the Tarkine, and possibly decades of environmental contamination from an abandoned, unviable iron ore quarry.
TOM ELLISON gave heaps of warnings on Tasmanian Times ...