I thought that was inevitable. I think we would all have panicked if it went straight into suspension. Having given this a lot of thought I think its on the right track going forward and as such the cash drain is in repaying the equipment finance. By my calculations they have to repay around $10 milion but depreciation is only around $5 milion and profits dont generate enough.
I would welcome a 1 for 1 rights issue at 8c that would raise a fair amount and i like the company les geared. Compared with the potential its not that much now that the share price is so low. I would even be prepared to buy more than 1 for 1 if I knew they would allow us to do so. It would take away uncertainty.
Maybe they dont want to do that because the major shareholder wanted money out but it is time to do a rights issue... Get the company fonances sorted quicker to start paying dividends and get on with the business.
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