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

CTV

Click for more information

0.00%

0.8¢ colortv limited

Warnie So you are suggesting EN1 management have not done any...

First 31 Last

Share
Profile

Follow
Paul100

3,701 Posts.

176

09/09/19

16:16

Post #: 40360818
Share

Originally posted by Warnie: ↑

Mining companies (explorers) are capital intensive, they only survive on debt facilities or CR
When they mention potential size it's usually based on certain drill results or past results.

if EN1 said we require the debt facility as we have conducted detailed research on 10,000 publisher's cash flow issues and as a result of that, by entering a debt facility we can increase our own revenue by X and our bottom line by X even after accounting for the extra cost.
The breakeven point is X

Now it has substantiation behind it, this business is more or less unprofitable so they are going to add to their costs by borrowing $15m on the whim that this will entice more publishers to work with them.

That's just a guess, and a costly one if it doesn't have the desired effect, margins are tight enough now.

Expand

Warnie
So you are suggesting EN1 management have not done any assessment of the profit impact of using the facility.

Ted has continually mentioned his net zero plan. So he has plan. Just because he has not detailed his plan to everyone is irrelevant and if he had broadcast his plan you would now be critisizing him for putting out a plan which was not 100% locked in.

EN1 Price at posting: 2.5¢ Sentiment: Buy Disclosure: Held
4 Upvote

0 Great analysis

Reply

Top Stories

SS1

Sun Silver submits US$60M Silver Paste Funding Application to US DoE

Eurozone-based companies find new ways to secure a regional lithium supply

With financials holding the fort, materials must step up with some heavy lifting to stimulate stocks

End of FY is a time to juggle wins, losses and capital gains taxes

Time for retail therapy buying in the shopping Scentre for hot stocks

There are more pages in this discussion • 100 more messages in this thread...

First 31 Last

Add CTV (ASX) to my watchlist