Australia's largest stock trading and investment forum Australia's #1 stock forum

AJQ

Click for more information

0.00%

10.0¢ armour energy limited

I'll need to recheck the booklet they put out when Westside were...

First 21 Last

Share
Profile

Follow
frmen1

1,981 Posts.

158

13/04/18

13:43

Post #: 32438263
Share

Originally posted by rmkpro ↑

BDO put the Kincora OPEX at $15mil when they did the Westside Takeover defence valuation.
This would leave $5mil for corporate/funding costs to come out.

I think historically corporate costs were around $3mil and I have no idea on the funding costs as yet until we see a new quarterly what the funding costs/interest expenses are sitting at to estimate? I imagine a bit still.

Based on the above this would leave minimal free cashflow, however the latest announcement does say they 'EXPECT' to be cashflow positive from operations...

Read into this what you will. The fact is we are producing which is great, a lot better than being another exploration play on the market. With the extra capacity available at Kincora being the secret sauce to the cash pump recipe. Just need to make sure we do not spend more proving up production than what we are generating in gross profit earned from customer invoices... easier said than done maybe?

Overall I like where we are heading. Enjoy your weekend everyone!

Expand

I'll need to recheck the booklet they put out when Westside were hunting us, however I believe the CAPEX was around $15M, and the expected OPEX was around 7% of Kincora output revenue. Enjoy your weekend too rmk.

AJQ Price at posting: 8.3¢ Sentiment: None Disclosure: Held
4 Upvote

0 Great analysis

Reply

There are more pages in this discussion • 6 more messages in this thread...

First 21 Last

Add AJQ (ASX) to my watchlist

SPONSORED BY