Just to be clear, at 30 June when WHC reported net debt of (A$1.3B) this was what it constituted:
i.e. it’s basically just their credit facility, less their cash balance. Here is their recent net debt profile: 30 Jun 2024: (A$1.3B) 30 Sep 2024: (A$1.2B) 30 Dec 2024: (A$1.0B)
They have since just paid A$363M in Stamp Duty so that net debt position is basically back to where it started at (A$1.3B). They should receive post-tax proceeds of approx ~A$1.62B from the JV selldown. This will put them at net cash of ~A$300M, not including any other cash building during this current quarter. Hooray! Debt free!
However in two months they have to pay ~A$800M (US$500M) to BMA as the first deferred anniversary payment. This will be followed by another US$500M the following year and US$100M the year after that.
Talk about “debt free!” all you like, but it’s just talk. The market is reflecting that in the stock price.
WHC Price at posting:
$6.06 Sentiment: None Disclosure: Held
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