Good points thepick.
From their qrtly's US$13m is due in Dec and US$12.5m due Feb/Mar. If not paid these r on same terms as US$25m con note - 4 1/2 yrs and convert at 40c.
But.. of the 2 undrawn facilities, each for US$4m, one is for cost overrun and 2nd is for debt service reserve. Relying on the on time on budget announcements by the coy neither of these should need to be drawn.
Your right on US$. US$25m will be around A$35m. Still leaves $10m on top of the cash they have and they are still fully funded.
Given that the choice is to raise funds at 40c now to repay rcf us$25m or let them convert to con notes it is probably only the interest that would be the challenge. trying to follow the experts report from last year it seems that rcf's shareholding would creep 3-4% per qtr for interest payments paid in shares unless the coy has the cash to pay.
Value wise I would have thought let the debt become con notes and leave the 50% margin less interest of course to the shareholder value.
thepick's logic is right and i can't see why mangt would prefer a raising right now especially at a 27% discount. But looks like no matter what managemt may want that is not what rcf wants so is a raising we will go. its definitely in rcf's interests. But what is their big picture? they are PE after all.
MZI Price at posting:
54.0¢ Sentiment: None Disclosure: Held
