Metals - Spot price analysis
Monday 08 December 2008 7:01 AM
To be blunt, if these prices continued, we would expect 95% of the current base metals companies within Australia not to be around in 1-2 years time, such low prices are simply not sustainable, with all bar the lowest cost debt free companies bleeding cash flow badly at these prices. We do not expect these prices to remain in the longer term, but took a close look at not only valuations, but also short term cash flow positions to see who (if any) were best equipped to survive 6-12 months of sustained low prices