Well my interpretation about running out of cash is as below. At no point on the webcast call was there any indication they would run out of money. They just want more flexibility in their borrowings. what have they breached that sends the message they’re going to go broke? They have had extensions. They have alternative sources of funds. $100m. If you’re in business you are always looking for options that will get you through an unstable business environment without extending themselves. In my mind the CFO showed leadership as well as a very detailed explanation to where they are at. Didn’t seem to me that there was a worry about getting to where they need to. Getting to 2026 is the key and if they have negative cash flow of $40m (like March) for next 3 qtrs from operations and a further $100m CAPEX spend for the year it comes to $220 million. They had cash of $200m at the end of April. Sure there’s a shortfall of $20 million but they said they have an unencumbered bucket of $100m they can access. receivables and payables thank f#%k are equal.This will also be able 2027. 2027 is the icing. So they start the 2026 year with Mammoth and Buchanan expansion at full capacity. Logan I don’t know. Curragh turning to dragline. Savings, further revenue and lower costs should prevail if coking coal prices don’t deterioration much from where they currently are situated. They only made a $37m FCF loss for March qtr. who cares right now about EBIT, EBITDA or net profit. It’s all about cash. Get to 2026 and they should become positive FCF. 2027 will just be extra cash of circa $200m based on my calculations in an earlier post. The icing on the cake.
CRN Price at posting:
11.0¢ Sentiment: Hold Disclosure: Held
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