Hi Timbin and happy new year to CCU thread followers.
Yep, still on the sidelines.
Bit concerned that CCU has not released full December production figures as it has a consistent record of reporting good production early and poor production late. But leaving this aside, I'm doing my numbers on nameplate capacity (ie 600koz / qtr).
At this production rate, and assuming CCU can deliver on its $19/oz full-production rate forecast, the company would be close to covering interest and administration costs - ie, be close to cashflow neutral. This still leaves outstanding debt repayments to be funded.
I think the CBA has agreed to the one-month extension on the basis that CCU conducts a capital raising this month (there's no other way CCU can pay back $1.9m at the end of the month). So I suspect an announcement soon. With the recent SP strength, CCU may be able to get the capital raise away at 9c ..... a level at which I would feel more comfortable about re-entering.
Of course, I've been wrong about this stock on many previous occasions ....
GLTA.
- Forums
- ASX - By Stock
- CCU
- Ann: Corporate update
Ann: Corporate update , page-16
-
-
- There are more pages in this discussion • 4 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)