Ann: Credit rating change (Moodys), page-9

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8horse

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12/05/17

13:22

Post #: 24652248
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Originally posted by hottuna ↑

Unfortunately for QIN they still burn $20m a quarter and have put option exercises coming up. They are generating next to no sales of indian sandalwood, whilst plantation sales must be under pressure after the exposure of QIN's behaviour.

They had $90m of cash at the end of December, so 2023 is irrelevant - they need new infusions of cash to keep the lights on. That's going to have to come from either new debt - which will be incredibly expensive after these revelations - or a massive, discounted rescue rights issue, and good luck finding an underwriter for that now that Canaccord have washed their hands of QIN!

For me, the question is whether QIN survives without raising capital or going broke till July or December 2017, not 2023.

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It depends on how you view on their assets.
You are definitely doomed. ZERO. end of story.

They have $107m cash and other current assets $141m as at 30 June 2016; tangible non-current assets $1.22b

The first put option due in July, if Exercised, the asset being bought back, is not worthless.

It's no ST going concern issue, imo.

QIN Price at posting: 46.0¢ Sentiment: Buy Disclosure: Held
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Ann: Credit rating change (Moodys), page-9

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