Ann: Update on Liquidity Management, page-65

My 2 cents - I don't know they needed to even talk to management tbh. It has become clear CRN needs to secure extra liquidity at a time then they have allowed themselves to get too close to running out of cash and the SP is rock-bottom. All too hard for L1 and AusSuper - management have lost credability, met coal story not showing any green shoots yet, SP losses so big already, realistic chance of material dilution, bad for the brand (being associated with poor investment choices for too long), maybe mandate limitations due to leaving index or market cap of CRN now. Time to move on for them.




Which leaves us 'deep-value' retail investors back where we were a few months ago - good risk/reward requiring:

1. No short term liquidity rug-pulling / debt being called in (tick for now)
2. A source of liquidity to get through 18 months (I'll trust management on the first paragraph above - they are not too far from an announcement)
3. A plan laid out for the next 2 years that is clear and believable to get to break even or better after Stanwell contract rolls over
4. IF there is equity dilution (which I've learned to always expect even if it doesn't seem needed/likely) or some corporate action it needs to not wipeout most of the upside for retail holders.

I've added to my position and now at my limit. I'm going to change sentiment to a 'buy' based not on the lower price (could easily still go lower - no strong conviction in the market until the points above are dealt with), but the fact that the ABL is holding and in fact more useful now and their signalling an announcement is coming.

I'm most worried about point 4. above tbh.
GLH.