Stu
According to their half yearly they have well over $200M of 'interest bearing' liabilities...but their cash balance is well under $200M (although they have received some subsequent payments from Couer d'Alene for their silver agreement).
The problem they now have...and this could be glossed over previous when ZINC and LEAD prices were soaring (and so profits easily accounting for borrowing expenses...is they have high financing costs.
And they have also flagged LARGE expenditure commitments, mostly develpoment...so the cash to liability ratio is going to become even more onerous.
Unfortunately, the benefits of the development expenditure will not be all that great due to the weak zinc.lead prices.
The market cap of $180M, given the above uncertainty, appears to me to be quite expensive.
If PEM merger is dead in the water (seems likely) then that lifeline is gone...and the only way I can see CBH surviving is to racaptialise...in other words, significant dilution via a capital raising. OR, the preferred scenario, a massive recovery in zinc and lead prices...but at the moment that is not seeming very likely.
Its looking very shaky imho.
Cdchi1
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