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If they have so much cash why are they suspended in order to secure funding? And why did the RNS on 29th July state 'The Company will require further funding to continue operations at Lake Way before the end of 2021'.
Be very careful here this company is in real trouble.
yup - dangerous territory here. Something is happening - but without any more information about the capital raise, I am still highly sceptical!
Personally a rapid dump on Monday wouldn't surprise me at all.
There's a block buyer picking up stock this morning - all those round trades in the 100s of 1000s. That seems to be pushing the price up for now.
At 30 June 2021, the Group had cash reserves of $69.441m (2020: $7.030m) and net assets of $251.896m (2020: $60.127m), an increase of 319% compared with the previous year. The increase in net assets is largely a result of raising $202.148m) throughout the 12 month period and directly applying those funds to the construction and ongoing development of the Lake Way Project.
They might have a decent couple of bob in the bank, but just scroll down the balance sheet a tad further and look at the level of outstanding loans. The only reason the balance sheet isn't insolvent is solely down t how they account for development expenditure. Knock that out and this is totally bust.
M/ c. Is only. £22m
I will hold this one
cash $70 million, but the outstanding loan is a whopping $162 million!
yup, if it goes tits-up then cash is the first thing going to close creditor' balances
(and those guys already had enough f$%-ups)
there's an equity though but how much of residual assets
(some hard-mounted equipment in a middle of dessert?)
are salvageable if all this suddenly goes south?
someone said main rule of investing is : "never lose capital" ,
(although without taking risks it's hard to get profits too)
let's see RNS soon about who decided to take half mil position here (it's more than 3% of shares turned today already after all)
@Yuri, there are no assets at all. If you go back through all the funding information, the corporate funders keep the Lake Way processing plant and infrastructure. That was part of the deal.
So if this goes tits up, and the loan facilities default, there is no asset left to sell. Zero, Zip, Sod all, Not a sausage, Nothing.
Those pushing this as an underpriced opportunity have their own agenda and don't give two hoot for those that are daft enough to buy in on just hope.
Honestly, guys, wait until the funding deal is sorted and we all know where we stand. You could end up with your share of the chairman's company car - that is all that will be left.
@WelshFalcon - thanks, totally agree - financing something like this via unsecured debt would be a madness, collateral normally goes at sufficient discount to cover any premiums including absence of liquidity at that location.