Ann: Appendix 4C Quarterly Activity Report, page-58

"So, if they don't have to eliminate their debt risks (pay back in full) then they have 6.4 quarters of funding available - simple!"

Simple, but wrong, unfortunately.

For starters, the majority of the company's debt falls due within the next two quarters, so it needs to pay that back.
[Refer Note 5f on page 156 of the Annual Report report: The Hercules debt of $53m ($50m drawn and $3.2m cumulative capitalised interest) falls due in March 2022.

So there's that.


And then there is also the not-insignificant matter of other Current Liabilities, amounting to a further $41m ($19m for Trade Liabilities, $20m for Current Provisions, and $3m for Lease Liabities) which require application of capital adequacy tests for solvency satisfaction purposes.


So MSB's true surplus capital position is:

$116m (Cash @ 30 September 2021)

LESS:

[Current Debt of $57m and Other Current Liabilities of $41m]

So, really only around $20m in true surplus capital.

Which means that by the time it gets part of the way into MQ22, the company will have insufficient capital to service its current liabilities.

Which means it will have to raise additional equity capital between now and then.

(Unless, of course, the company is able to secure funding from one, or more, of the many prospective partnership entities with whom it is engaged in enthusiastic discussions.)

.