you might be surprised - their debt is only $54.5m USD and they did produce $9m operating cash flow for the 3 months. Ironically the strength in the $AUD is a positive in that more half of their debt is in $USD.
The full consolidated loan from Noble is been charged at only 5.28% (USD libor + 5% margin) so I think they're in not a bad position. Noble doesn't seem to have extracted their 'pound of flesh' in return for bailing them out as I had feared would happen. Very 'Noble' of them... ;-)
They just have to extend their resources somehow, the talk about potential developments (hopefully in conjunction with Noble)could be very 'interesting'.
Any further cash from Monarch (and they received that $2.9m after the quarter end) would be a real bonus.
Still only a $55m market cap for a company that could produce $36m in cash on an annual basis - not bad I think you would agree....
You might make money (or at least some of it back) on your 600k after all.....
Will be interesting to see if Fat Prophets continue to recommend the stock as they were doing previously.
Cheers
J.
TTY Price at posting:
21.0¢ Sentiment: Buy Disclosure: Held
