What am I missing?, page-176

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8horse

34,339 Posts.

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22/06/17

12:16

Post #: 25427832
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Originally posted by Maysgr ↑

I replied to your original post because you said "that leaves 2 options" and "which one is it". I note your comments in the most recent post.

In regards to the latest post,

RRP had $484,000 in the bank in the Quarterly Report for 30/6/2016.

The only way they would be in a position to purchase the mine would be to borrow funds.

RRP have owned the mine since the end of August 2016. In my opinion, the debt would always be high straight after purchase and then reduce over time (I hope you would acknowledge that too).

The Annual Report you quote was 3 months after purchase. The debt was always going to be high in that report, there had hardly been a chance to pay any of it off.

I have been following the debt through the Quarterly Activities and Cashflow reports

QTR ending 31/12/16 (1/2 announcement) $131.5m (sum of the 2)

QTR ending 31/3/17 (28/4 announcement) $111m (sum of the 2)

In the original announcement advising of the purchase they advised they would have in excess of $25m. This has now increased to $100.9m as at the end of May.

$11m had also been spent on redundancy payments.

I FULLY understand the comments you are making about NET cash.

Those posting about the cash balance have not been quoting NET cash. They have been posting about cash on hand. Technically they are correct. If they don't understand the difference, then that is there problem for not understanding.
You will notice I have mentioned before on this stock about not forgetting the debt.

There are many companies who quote actual cash on hand in their announcements (regardless of whether that is net cash or not).

I am not on, and have never been on, Twitter so I have no idea what is being said about this stock on there.

This stock, in my opinion, will remain volatile and may be the subject of selling pressure prior to the suspension on July 13. I am sure there will be many holders/traders who will not want to hold this stock during the 6-8 week suspension.
After the consolidation (and re-listing) I expect there will be less traders (day and very short term) in this stock, and it will become less volatile.

I am very comfortable holding this stock. I would be happy to buy more if I had funds. I will have some by the time the CR comes around. The debt is being reduced and the cash balance is increasing.
Forecast NPBT of $61.1m for a company with RRP's market cap is compelling for me.
I understand this is tied to the coal price. This will provide plenty of scope for further debt reduction (without knowing how much it is reduced by with the CR proceeds).

It is up to each individual to make their own decision about a) whether to buy or hold a stock and b) to understand the business, it's balance sheet and profit making potential.

I would hope every individual is not making buy or sell decision based solely on what they read on HC.

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Excellent factual post!

Do you know the budgeted $15m upgrade has already been spent or not?

Next week will provide good opportunties for many stocks as it's last week for tax loss selling.

RRP Price at posting: 7.5¢ Sentiment: None Disclosure: Not Held
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What am I missing?, page-176

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