Mongolian Mining Corp. (MOGLF)

[Ponch73]

Debtholders being pleased is irrelevant to the point about the perpetuals.

Look, you can't have it both ways. Either the debt is paid off and the perpetuals come due (and you have to include it in the calculations) or the debt isn't paid off, the perpetuals never come due and the common equity goes to zero.

MMC's margin of error is razor thin when they can only generate $13M of cash after financing costs in a half year of enjoying $140/ton average prices. They need to be generating at least 5x that amount to be in a position to pay off the debt. And we have no idea how long the $140/ton average prices will last.

China could cut MMC's throat tomorrow, either on price or on volume or both.