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Arbitration case.

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barry_1
Super Contributor
Tom Dale says that the decision is about to be given....If it goes against them they will have to pay $4 million to Honeywell...If how ever it goes for them they will receive $3.9 million....Anyways for the first time in eight years they are making a profit....Only China and We supply the world with the scarce fluospar.Metorex also supplies the mineral....I bought this morning on a wild speculation that it will outperform MRF in this year....Only my opinion.
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5 REPLIES 5
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I have also been watching this one closely. If I recall, the honeywell issue was a case of Sallies reneging on a supply agreement because negotiated prices were too low. If this goes the wrong way, where will Sallies get the R40 million? They have about R25m in cash left (Sept last year, so we don't know how much has been burnt). Seems to me this share is touch and go, and the company's ability to trade as a going concern is dependant on this court case. One thing I am sure of, it will fly off the back of a favourable ruling.
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barry_1
Super Contributor
The reason given by Sallies was that Honeywell,failed to pay on time,for a whole trainload.They kept asking for payment,but even after months recieved none....Yes the contract they were tied into had the price at much less than the going rate and would have have detroyed them within a short time anyways.
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Barry, do you have any ideas, insider info, guestimates, etc as to their cash reserves? Where can they get the money to pay for a negative court ruling?
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barry_1
Super Contributor
See Company News,they say that they have not put anything away,if the decision goes against them,thats the main danger,they would then have to liquidate,perhaps theres a white on the horison?...Their product is of a higher grade than anywhere else in the world.
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barry_1
Super Contributor
ps that should be white knight!
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