quarterly report, page-34

Did you know that longtom only had a cash operating gross margin of 11%?

Even if NXS can sell 50% of longtom for $200m ($45m more than AED where willing to pay). That still leaves them with:

1. $160m of debt;

2. 50% of what seems to be a barely profitable asset*; and

3. Crux which they will have to give away 90% of to get anywhere near being able to fund their share of the US$650m downstream capex.

I have just noticed that $8m, of the remaining cash balance ($33m) is in escrow! Therefore based on my earlier post NXS will be sitting on available cash of $3m at the end of June 2010. Not quite enough to pay salaries for another quarter and certainly not the bank.

Richard Cottee has a huge challenge ahead of him. Unless he can pull off something spectacular, get ready to open your wallets for a capital raising. It's all there in black and white.

*who would they sell it to, and for $200m!