And if one goes further into the cash flow statements: $16m of cash flow from operations (after accounting for investment cash flows). $19m of dividends paid.
So the cash flow statement is showing that their is not massive cash flows that will support increased debt (hence management acted intelligently by paying down debt by $20m using the cash on hand, but which resulted in a net cash on hand reduction from $79m to $50m).
So again my conclusion (and yes its just speculation on my behalf), that if a large acquisition occurs, there will be a large capital raising. And if by chance there is no capital raising, I would be even more fearful because the balance sheet would be placed at major risk (which creates the risk of an even bigger and more dilutive capital raise some point in the future, when the raise will not be done on terms suitable for SSM but on terms demanded by their financers)
SSM Price at posting:
85.0¢ Sentiment: None Disclosure: Not Held
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