Resourcehouse IPO

Signalling the market top... first we have a purveyor of used handbags IPOing this week (Milan Station) now we have a real POS ...

Mainland contractors get the work; China Power gets the coal and China Eximbank gets a steady cash flow to pay off the debt and any interest. The profitability of the project, or Resourcehouse for that matter, is not their concern.

But what about Palmer? Won't he, as a majority shareholder, care about profit? It would be good if the project made some profit, but he will be enjoying the royalties anyway. He gets paid 30 Australian cents, plus any inflation adjustment, for every tonne of coal produced. That is estimated to be A$25 million for the first three years of production, according to the draft.