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

NCZ

Click for more information

0.00%

$1.10 new century resources limited

Debt doesn't matter one bit to a company's stock price when its...

First 34 Last

Share
Profile

Follow
dimitri.vid

785 Posts.

216

29/07/20

08:29

Post #: 46139755
Share

Originally posted by Vector: ↑

Spot on. Lets not forget about the Century liabilities either A$200-300M at present.
40% of EBITDA has to be quarantined to replace the c. $200M MMG bond so even if Century is cash flow positive/profitable they will be limited in case they need the cash for Goro.
Assuming this goes through the company will have huge amounts of debt (A$800-900M) and only need a hiccup (Goro protests, century pipeline/port maintenance, COVID, disruptive wet season, lower prices) to derail the whole train.

IGO have the best seat in the house - their investment is a punt on everything going right (commodity prices, operational risk, political/community risk etc). Worst case scenario they get a good seat to look at the books and buy the FNQ infrastructure without the debt. Potential for them to win either way.

Expand

Debt doesn't matter one bit to a company's stock price when its on track to anything close to its forcasted revenue. Crazy but true.

If they get this Goro deal done, this will be the stock to own on the ASX. CRs and all.

NCZ Price at posting: 21.0¢ Sentiment: None Disclosure: Not Held
10 Upvote

0 Great analysis

Reply

There are more pages in this discussion • 140 more messages in this thread...

First 34 Last

Add NCZ (ASX) to my watchlist