I’ll believe it when I see it. Unless they partner up or flog Nifty I think a CR is a formality. If Citi waves the mandatory principal repayments of $2.5m per quarter and extends the tenure and quantum of the loan then perhaps they can get away with it but from what I’ve seen with this management team is they are conservative and I don’t think will over gear the company.
Ongoing expenses:
Principal debt repayments $10m pa ($2.5m per quarter)
Interest: $2.5m pa
Corporate G&A: $5m pa
Nifty C&M: $12m pa ($1m per month).
There you have $30m in annualised expenses which are meant to be covered with the 50% share of renison. Problem is Renison is spinning next to no cash as it builds out Area5.
MLX Price at posting:
8.2¢ Sentiment: Hold Disclosure: Held
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