Ann: Unmarketable Parcels Sale Facility Update, page-8

First 8 Last

Share
Profile

Follow
TLS351

77 Posts.

9

22/04/24

16:01

Post #: 73460144
Share

Originally posted by jdpc35: ↑

I read your post and emphasis on debt reduction and I am not really sure what you are referring to.

BOL essentially has 2 types of debt on its balance sheet:

1. Lease debt that is directly tied to equipment finance (i.e their mobile cranes). They have about $58.6m of amortising lease debt to finance $72.6m of "Right of Use" assets. These leases have terms of between 1 to 5 years and are amortising at about $25m annually (in effect the depreciation expense of these right-of-use assets). The facility turns over as they sell old gear and replace with new gear - in the December half they amortised $14.6m (so reduced the debt by that amount) and bought $21.4m of new equipment.

I view this facility as "good" debt - clearly tied to the financing of depreciating assets, but not overly leveraged on the total portfolio of plant and equipment - on top of the Right of Use assets, they have a further $82.7m of unencumbered plant and equipment.

2. Balance sheet debt. This they have been amortising and we have seen it reduce from $9.4m to $7.3m on a net debt basis over the past 6 months. It was as high as $24m a couple of years ago, so they have been nicely reducing this. However, the current $7.3m net debt liability is not large relative to their annualised EBITDA (ex right-of-use depreciation so we are not double counting) which is running at circa $26m annually - in effect, they could pay off the residual of that debt within about 4 months if they absolutely had to (excluding working capital movements and capex).

So on any measure, I believe that BOL does not have a debt problem (unlike where it was about 6 years ago) and has a P&L that is sound and trending strongly in the right direction. Its current total liabilities are very sound relative to generated cash flows, are within their targets and are appropriate for an equipment heavy company.

Expand

I agree that we don't have to worry about the debt on the gear, that is fine.

But I think that balance sheet debt that is floating between 7m and 9m is receivables financing from memory. I would like to see them build up a cash buffer and move away from using factoring for working capital. There would be nothing wrong with having 10m in cash and no receivables finance.

Last edited by TLS351: 22/04/24

BOL Price at posting: 13.5¢ Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

Reply

Top Stories

The business of sport: Warren Tredrea's take on this week's news

CC9

Chariot locks in high-potential drill target at Black Mountain, one of the USA's largest lithium landholdings

SER

How flooding did Strategic Energy Resources a favour: Four holes down in 'redesigned' gold & copper campaign

Week 34 Wrap: HotCopper's top watched; Oz banks cut saver interest; Kamala’s 28% corporate tax; AI’s back

The Rising Tide: How institutional adoption is shaping the future of crypto

There are more pages in this discussion • 1 more message in this thread...

First 8 Last

Add BOL (ASX) to my watchlist

(20min delay)
Last 15.5¢		Change 0.010(6.90%)		Mkt cap ! $65.49M

Open	High	Low	Value	Volume
16.0¢	16.0¢	15.0¢	$429.1K	2.762M

Buyers (Bids)

No.	Vol.	Price($)
5	438337	15.0¢

Sellers (Offers)

Price($)	Vol.	No.
15.5¢	534402	4

View Market Depth

No.	Vol.	Price($)
5	438337	0.150
4	125034	0.145
4	108995	0.140
2	12786	0.135
3	211000	0.125

Price($)	Vol.	No.
0.155	534402	4
0.160	2120169	8
0.165	612319	2
0.170	96205	1
0.175	66280	4

Last trade - 16.10pm 23/08/2024 (20 minute delay)

BOL (ASX) Chart

Ann: Unmarketable Parcels Sale Facility Update, page-8

The business of sport: Warren Tredrea's take on this week's news

Chariot locks in high-potential drill target at Black Mountain, one of the USA's largest lithium landholdings

How flooding did Strategic Energy Resources a favour: Four holes down in 'redesigned' gold & copper campaign

Week 34 Wrap: HotCopper's top watched; Oz banks cut saver interest; Kamala’s 28% corporate tax; AI’s back

The Rising Tide: How institutional adoption is shaping the future of crypto

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Ann: Unmarketable Parcels Sale Facility Update, page-8

Top Stories

The business of sport: Warren Tredrea's take on this week's news

Chariot locks in high-potential drill target at Black Mountain, one of the USA's largest lithium landholdings

How flooding did Strategic Energy Resources a favour: Four holes down in 'redesigned' gold & copper campaign

Week 34 Wrap: HotCopper's top watched; Oz banks cut saver interest; Kamala’s 28% corporate tax; AI’s back

The Rising Tide: How institutional adoption is shaping the future of crypto

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News