A fair summary from Sean at The West Australian … Jules was...

A fair summary from Sean at The West Australian …
Jules was fairly triggered at the start by that blatantly incorrect analyst note late yesterday!
It may have been from Citi? I wonder if whoever wrote it benefitted from the hit to the price …


https://thewest.com.au/business/min...sure-to-troubled-gascoyne-resources-c-9773459

NRW takes profit hit on $17.5m exposure to troubled Gascoyne Resources

Sean SmithThe West Australian
Thu, 16 February 2023 11:31AM
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Sean Smith


NRW Holdings has written off its exposure to Gascoyne Resources’ Dalgaranga gold mine in the Murchison. Credit: Unknown/NRW Holdings

Mining and civil contractor NRW Holdings has taken a $17.5 million hit after the write-off the company’s exposure to troubled gold miner Gascoyne Resources.

NRW said it had taken a conservative decision to write off in full Gascoyne’s debts to the company, NRW’s equity stake in the miner and a production royalty linked to the suspended Dalgaranga mine in the Murchison.

The cumulative $17.5m hit, together with excessive rains which slowed work on projects on the east coast and northern WA, reduced NRW’s interim profit by 20.5 per cent to $35.7 million, NRW disclosed on Thursday.

Its shares plunged as much as 14 per cent in early trade, perhaps affected by an incorrect report of delays at the Mt Holland lithium concentrator where the company is deployed. As at 11.30am, the stock had clawed back most of the early loss to be 4 per cent lower at $2.84.
Having previously sent its owner under in 2019, Dalgaranga was mothballed late last year to allow another recapitalisation of Gascoyne.


NRW chief financial officer Richard Simons told analysts on Thursday that there was the possibility of writing back some of the Gascoyne debt if the miner was resuscitated again.
“We have entered into an agreement with Gascoyne, subject to the successful outcome of their capital raising process, (where) we will make a recovery of an element of our receivables, probably a couple of million dollars, in additional to also securing some new equity which will allow us to partially recover the write-off we have taken,” Mr Simons said.
“But we need to see that process close out.”
Mr Simons said Gascoyne was “apparently making process” on the recapitalisation, but NRW had yet “to see anything formal from them”.

NRW’s revenue rose 15 per cent to $1.3 billion, with the group reaffirming its guidance for full-year revenue of between $2.6b and $2.7b.

Earnings before interest, tax and amortisation for the December half-year were 7 per cent better at $80.1m, keeping the group on track for between $162m and $172m for the full year.


FWIW  my notes on Mt Holland;

Mt Holland - NRW work well advanced​

The analyst who wrote that margin compression was likely is incorrect at every level ​

Crushing to commence in April !​

The Reuters note also noted expansion potential - this closely involves NRW !​

And on Gascoyne;
The write off decision was made on the basis of
no formal word yet on position re NRW receivables,  equity, and loan
- if recovery happens(?) they will partially recover via new equities and payment of receivables.

cheers