DML 0.00% 1.9¢ discovery metals limited

future funding issues, page-6

  1. 1,627 Posts.
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    At the moment DML would be in some strife on their debt issue. Does not matter what the resource is worth if there is immediate debt.

    Even the line "The balance of the March and June 2013 principal payments has also been shifted to the maturity date of the loan (31 March 2015) as a balloon payment." so what happens if the market capitalisation keeps falling? Will there be triggers where this extension will be recalled?

    Seen companies with great assets go under when debt becomes a burden before.

    If DML has to go to the market to raise a sizable capital raising (like $100m+) this will be disaster to the share price.

    I have read a lot of posts on DML and seems that people are more focusing on the production cost but I can see that this debt issue is much more ominous that many here realise.

    As for the trading side goes, management can see the buy and sell if they request this information from the share registry. If there is "manipulation" or "suspicious" surely management can raise with the ASX.

    I have emailled the company to ask of these issues as well. Hoping that they can answer it properly.

 
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Currently unlisted public company.

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