At this price, I don't think any repayment is factored in.
My take is they recover some of the funds, not all. Given LPE are second in line to be paid, I imagine they don't get the full amount. I can't see a situation where 9.5acres of land (even with DA approval) in Bundaberg east is worth that much.
Nevertheless, I see them making approx. $2m PBT excluding interest from that loan (with no tax to pay for a while)** I also suspect they'll finish paying the Roadknight facility very soon. So you'll have a debt free company fully funding its WC needs very soon. If they can resolve the few legacy contract and service issues (which I believe should be OK now), we should see service points grow and op leverage kick in.
One more thing to note - any talk of DMO changes does not impact embedded network operators (unless they decide to include them in future)
[**] - interest earned gets messy, because there's some interest revenue from the up-front system installs they do. It's not all interest earned from the Biohub loan.
LPE Price at posting:
11.5¢ Sentiment: None Disclosure: Held
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