Always looked this way. 29 deployed at end of FY24 + 11 units complete & ready for installation - so construction or available cash flow isn't the hurdle it is the pace of getting to site and installing & this is something we don't control. One would expect (hope) they get these 11 deployed in FY25 making - at least - 40 by end of FY25. This is roughly where I believe they will get close to break even because the D&A is very high - admittedly it is a non cash expense, but must be provided for.
The cost area to watch is what they call 'Central costs' which comprises research, development, sales and head office costs associated with the Group’s growth and development trajectory. These are skyrocketing presently - $13m for 1H24.
Overall: off track, but maybe this is because of incorrect assumptions on the time to install. Plus, costs must be contained AND perhaps they need to spread the net wider to capture some Ag and Cu customers. Cash and construction don't appear to be a problem.
C79 Price at posting:
$6.55 Sentiment: None Disclosure: Held
