Where do I start? Let's look at the cashflow statement of the financials. Taking out the noise, net surplus cashflow from operating activities is around $19.5m. Taking out $300m earmarked for spending of S3, M3 and P2 from the ending cash balance, we are left with $43.6m. Assuming $85m have been spent for the trio (S3, M3 and P2), similar performance for the 2nd half, we are looking at around $153m left for capital expenditure. So more money will be required. So what options are there left? Another $300m Notes V is raised? Increased interest costs will more of less wipe out the surplus cash in a year and the need for cash will be even worse. More equity raising? Tell me that does not drive price down? This is just the tip of the iceberg and I've not even touched the dismal performance in new sales(exclude those announced before 1H18 seen since the last capital raising, management weakness, etc.
NXT Price at posting:
$6.50 Sentiment: Hold Disclosure: Held
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