However, I read mak's comment to suggest he believes this is the...

First 15 Last

Share
Profile

Follow
makattack

34,916 Posts.

480

02/04/15

08:00

Post #: 15024472
Share

Originally posted by Mightyatom ↑

smac, the other mak actually wrote "Definitely a potential precursor to administration". The adverb 'definitely' coupled with 'potential' and 'precursor' muddied the waters I feel. If meaning potential going into administration that is what should have been written. And yes of course there is the potential, nothing new in that observation.

However, I read mak's comment to suggest he believes this is the precursor to administration due to emphasis placed with use of 'definitely'. In which case I feel riskreward was correct to question it. So, what is out there?

* likely to require an additional capital raising - we all know that and at this stage of the game I think most of us would gladly wear it.

* Not aware of any other information necessary to inform the market.

* Newsat has received conditional proposals to invest or underwrite up to $60 million in quity and is considering these proposals with the lenders

My interpretation is funds are there, it just comes down to the source and structure of funds being acceptable to the lenders. At this stage of proceedings I give it a probability of 75% in favour of an outcome that enables the project to continue. I base that on negotiations have been ongoing for months; I cannot envisage a situation where negotiations would be drawn out to this length of time unless there was goodwill to find a solution between all parties.

Inevitably, additional equity will set us back on the road to SP recovery. However, the market is forward looking so after the initial 'market tantrum' on dilution then the next good news story should see it reverse upwards. Forward good news is most likely to be in the form of project update reports leading to launch.

The unknown factor is the extent of political pressure there is from within at Exim and Coface. That is where I see the 25% risk of failure, not the raising of sufficient equity. If it came to lender withdrawal it may not mean the final nail is in the coffin but I'll leave that for another day.

As it stands I'm 75% confident.

Expand

However, I read mak's comment to suggest he believes this is the precursor to administration due to emphasis placed with use of 'definitely'.

Well you read it wrong. My comment was in context to a poster's comment that 'at least its not in administration'. Best to read things in context. NWT is in a precarious position right now and you would not be a realist if you dismissed the possibility of administration as a potential outcome (which was the crux of my statement).

NWT Price at posting: 11.5¢ Sentiment: None Disclosure: Held
Upvote

0 Great analysis

Reply

Top Stories

RAG

Ragnar impressed by 11.55 metre pegmatite in Sweden, anticipating further mineralisation

NWH

NRW Holdings inks $109M deal with BHP for works at Jimblebar

TIG

Tigers Realm's US$49M sale of Russian assets – to a Kremlin-adjacent billionaire – set to go ahead

ASX Market Open: ASX200 to open flattish after Wall Street weakens on hot US inflation data | October 11, 2024

Week 41 Wrap: HotCopper asks “Back to Mongolia?” for Elixir; US CPI comes in at 2.4%; eyes still on China

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

CXU

Cauldron Energy reports "excellent" uranium assays in latest drill run

SHN

Sunshine Metals kicks off copper gold drilling at Truncheon; Highway East targets

A3D

Defence MOU for propulsion systems pushes Aurora Lab shares higher

IMA

Issues emerging as Australian companies tackle critical minerals challenge

First 15 Last

Add NWT (ASX) to my watchlist

However, I read mak's comment to suggest he believes this is the...

Top Stories

Ragnar impressed by 11.55 metre pegmatite in Sweden, anticipating further mineralisation

NRW Holdings inks $109M deal with BHP for works at Jimblebar

Tigers Realm's US$49M sale of Russian assets – to a Kremlin-adjacent billionaire – set to go ahead

ASX Market Open: ASX200 to open flattish after Wall Street weakens on hot US inflation data | October 11, 2024

Week 41 Wrap: HotCopper asks “Back to Mongolia?” for Elixir; US CPI comes in at 2.4%; eyes still on China

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

Cauldron Energy reports "excellent" uranium assays in latest drill run

Sunshine Metals kicks off copper gold drilling at Truncheon; Highway East targets

Defence MOU for propulsion systems pushes Aurora Lab shares higher

Issues emerging as Australian companies tackle critical minerals challenge

Featured News