No they're not burning cash but need POSCO money none the less. Mt Cattlin is mid-grade mine and not overly exciting. SVD has good development potential though. EBITDA FY 18 should be decent around $80M anything above $85M and will get bid up when FY is released. The problem with this company is not now but in 2020 as capex increases that bites into profits (hence the aggressive hunt for JV) if the sector continues the way it is, it will likely need to raise debt and profits will be lower. Just a soft sector at this minute. Those who want to ask the directors for share buy back this is short sighted and no chance they will do it. Is the company expensive - slightly- forecasted 7.5c EPS FY 19 @ 27 p/e doesnt make it cheap in this down cycle.
GXY Price at posting:
$1.94 Sentiment: None Disclosure: Held
