Mark,

Just trying to understand the CLF selling shares situation.

1. Selling ~200,000 shares for ~0.5M$ is not a big chunk for CLF holdings of about 5M shares of ZEN (~9% OS for about, $11M). However, this seems to indicate CLF desire to divest its holdings in graphite which is not its core business regardless of the outcome of of the AGM on 29 July. It looks like current management will try to do it, hopefully it can find an institutional entity to sell the whole block, since it would take a while to sell a few small chunks over a period of time which would put the downward pressure on the SP. Casablanca will certainly divest all non-core holding, including graphite, chromite in Ontario, and perhaps FE holdings in Quebec, plus more...

2. Clearly, CLF is in trouble (financially or otherwise). Its cash and cash equivalent positions were at $364M as of 31 March 2014, but not sure how much its current position is given the on going expenditure including the announced dividends in May 2014. On top of that its long-term debt was at $3.2B (Market Cap is now ~$2.3B). It also draws on (a couple of hundred $M). Hence any savings, e.g. closing the chromite operation in the RoF, and cash generation (even at $0.5M by selling 200,000 shares of ZEN would help the piggy bank) since there are court costs (~4 class-action suits, and cost of the easement on KWG application for its private road (lost) and the current subsequent appeal (appeal heard, ruling is pending). Court costs are piling up, And ff CLF is lost again (at the appeal level) then it may have to compensate KWG for all costs involving time and legal representation (estimated at a few $M).

3. A technicality issue: One thing I still don't understand is that why CLF is considered an insider while its holding is less than 10% and it has no representation in ZEN BoD. Is there anything else that I missed that would cause CLF to report its acquisition or disposition of ZEN shares?

Bottom line: Hope that CLF could find a buyer for the rest of its 5M shares. Time for CLF to exit the graphite space. ZEN does not need this association.

goldhunter