gnm to increase bid?, page-10

Hi bot, in answer to your question I would say no, they do not have $125m on hand.
I think they have, at best, $75m.

Here is how I got to the figure, from looking at the 30 Sept half year accounts.

From the income statement it made a loss of $6m AFTER including unrealised foreign exchange gains of $24m.

The loan proceeds, Axis bank Consortium of $85m, appear to be fully drawn - they spent $72m on property, plant and mine development in the period.

Cash and cash equivalents at 30 Sep was $23m, this would appear to be made up of balance of the Axis loan, approx $10m, plus net cash from operating activities of $12m.

So I have added this figure to the recent raising of $50m to get approx., at best, $75m.

GNM own 17% of REY so they need to buy a further approx 214m shares. They could possibly increase the offer by a further $75m/214m sh = 35cents.
Say 25 cents to be conservative.

Investing in GNM is not for the faint-hearted - it is a loss making, technically insolvent company that can only continue with guarantees from the parent in India.

There is a deficiency of assets to liabilities of $27m. This what the directors state in relation to the technical insolvency quote;
"..the directors believe that going concern is appropriate because funding needs will be met by coal sales AND ONGOING SUPPORT OF THE ULTIMATE PARENT ENTITY, Gujarat NRE Coke Ltd and the equity and commercial raisings that will be achieved by the directors as required".

This is a deal being pushed by the parent in India - we would not know what financing incentives the Indian Govt may offer the Gujarat parent, given the Indian need for coal.
rgds