Once the debt is included in your calculation, it seems the share price is at fair value. There is 3 seperate part of debt need to take into consideration, the loan of 50m due in march 2018, the 115m loan + interest at around 11m a year capitalised on to the loan due in June 2019. 40m of this loan is payable in cash and the other is convertable at the discrestion of note holder. Either way, it is either less cash or dilution to existing shareholders. The debt to equity ratio is almost at 200%.
Profit margin is getting tight, ni price at 5.71, profit is only at .59 per pound base on the cost from last quarterly.
MBN Price at posting:
12.5¢ Sentiment: Buy Disclosure: Held
