Unzbuz
I am not suggesting bills need to be paid now but reserve reports don't take a year. Most companies can provide one within a month or 2. I would suggest TAP know that reserves are likely to he above the 7.45 m usd based on current reserves . Similarly the cost overrun is now a month old , so again perhaps 2-3 months of negotiation but I doubt much more. As of 2 weeks ago when I spoke to company the 2.7m otway payment was still outstanding . Now let's not forget that the first two items are in USD so in AUD terms TAP may be due to pay anything from 15 m usd ( lower end ) to 22m usd . That is 19m aud and 28.5 m aud. Now if one adds otway payment we have 21m aud to 31 m aud that needs to be paid excluding debt . They have according to last presentation 28m aud in cash all of which isn't accesible. You would assume company would want to maintain at least 8 m in working capital and let's assume another 10 million on restricted . That leaves a cool 8 million spare vs 21-31 m required.
If you look at how quickly the 10m odd to TAP is occurring , paid from liftings, this will drip through over a year . Now it would be silly to wait for the last minute to raise funds so my guess is a CR sooner than later - within a month or two.
TAP Price at posting:
26.0¢ Sentiment: None Disclosure: Not Held
