That's $2.8m of further MIS sales in the second half. Put that with the possible sale of up to $4m of inventory, plus cash from receivables on the MIS (10 months installments), and they are probably okay for another few months. However, it is unclear what they have done with the convertible notes - have they been repaid? Rolled over? There is no conversion notice - and I would have thought even a roll over would require an announcement. Yet repayment would have exhausted cash again post expenses.
It worries me that there were no current biological assets in the last half year report - does this mean there are no pearls to harvest? Or that (worse) the pearls being harvested belong to the MIS scheme? In which case they will still have the expenses of harvesting etc, but only a fraction of the income (from the end of project returns).
Price has picked up a little lately, but still not back to the Feb rights issue price of 2cps. I don't see much evidence of pick-up in pearl prices continuing yet (from the limited info I can find). Think it is perhaps safe to leave this on the watchlist - plenty more value to choose from at the moment without the risks. Will keep an eye out for the FY numbers.
APB Price at posting:
1.3¢ Sentiment: None Disclosure: Not Held
