Adjusted EBITDA or 'EBITDA from Ops' was $39mn in the FY22 1H and $91mn in FY22 full-yr. So the "first-half EBITDA from Operations" of $54mn that they report in today's update is a relatively strong result at a superficial level. The problem is the $20mn cost blowout. They're asking the market to view this $20mn, along with the $5mn blowout in FY22, as non-recurring costs. If you're a believer, and the company does get on top of these blowout issues, you'll probably do well by hanging in there, but you're looking at a 6-12 month wait to test your theory. I'm struggling.
I also wonder about the $91.2mn net debt figure. It stood at $81.3mn at 30 June 2022 per their 19 Oct 2022 AGM materials.
The 0.5cps dividend is a massive disappointment but makes sense in the context of the net debt movement.
I suspect we're looking at another 5-10% off the share price tomorrow morning, but happy to be proven to be overly pessimistic.
SSM Price at posting:
59.0¢ Sentiment: Hold Disclosure: Held
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