I would be interested to know if anyone on the forum knows much about the intangible assets the company hold. They amount to $4,962,948. In the directors report 31/12/15 there is the statement "company's existing coal assets have remained on a care and maintenance basis and the Board is assessing various strategies to deal with these assets with a final decision expected to be made before the end of the financial year." Generally I would assume that these assets will be attempted to be converted into cash and cash equivalents.
On the half year report there was $3,252,000 still in the bank and possibly soon to be more with the conversion of coal based assets into presumably cash. With a cash burn rate of $642,952 per half at present, the company has years at current revenue levels before there will be a requirement for capital raising. We would however assume with revenue trajectory, and an exceptionally low cash burn rate that profit is not too far away at all.
This is a wonderful stock, exceptionally de-risked in comparison to fellow tech juniors. Needless to say, reason why I hold a sizeable parcel.
VPC Price at posting:
5.0¢ Sentiment: Buy Disclosure: Held
