The fact that they are increasing by $5m is probably bad, means cashflow this quarter could be worse than expected. Probably Renison required more capital for their works this quarter than expected, and maybe lower production due to the works as well. Will all be paid back when complete and Area 5 is pumping cash.
This facility does cost a fortune, 7% p.a. in establishment and rollover fees and then the interest on top. Not cheap in today's current low interest environment, but I guess there is no reason why APAC wouldn't be trying to pump the company for cash to try and make back some of their losses.
Once again it comes back to Nifty. We could sell it for $50m tomorrow and we still probably would have been better off selling it for $1 a year ago. Every month that goes by makes this more obvious.
MLX Price at posting:
10.5¢ Sentiment: Hold Disclosure: Held
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