The losses are trending in the wrong direction however...even allowing for the accounting adjustment for impairment of assets (writedown) of $2.8m in the second half. Take this away and the underlying loss for 2005 is about $5.9m...compared to $5.8m for 2004.
They have indicated future annual running costs for the Stapleton plant plant can be capped around $420K, compared to $2.8m for the year just gone...if so, it will still only be a break even operation at best.
As I suggested in an earlier post, a major shareholder has provided GPE with a loan of $5m...$2.8m of which is still available. GPE seem to think this will be enough to last them until they can become cash flow positive...I do not see this personally.
Anyway...not exactly the best set of books, but still a long way from insolvency in my opinion.
Looks like anyone who bought during the recent dip may have picked up a bargain...although, given the size of the loss, the market may be expected to sell it off over the next few days...and then of course, we still have to contend with the bloody mortgagee selling.
Now, where have all those doomsday posters gone?
Cheers!
GPE Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
