once again poor management, a bad equity raise followed by mates rates options, and now shocking interests rates from what feels like loan sharks.
with such esg credits and low risk operation, they could have sourced the funding at better rates or via government grants.
EBIT on the demo plant was 4.8m
how much EBIT is taken up by these rates? too much for a low risk operation.
The only thing in LMG's way is this management... Whilst i dont think i know better, i certainly am not inclined to invest alot more into LMG until i see a more rationale management approach to risk.
In credit to them., this completely derisks the operation - but the price is higher than what i feel they could have secured with more time and more results / discussions.
Afterall, great market, great environment credentials, great profitability, why sign-up to loan shark rates?
The market is speaking loudly on this, i hope it doesnt change the momentum shift we saw recently (i doubt it will)
LMG Price at posting:
9.9¢ Sentiment: Buy Disclosure: Held
