Australia's largest stock trading and investment forum Australia's #1 stock forum

QIN

0.00%

29.5¢ quintis ltd

Still - the assumptions used last time was $2,800/kg so I am not...

First 57 Last

Share
Profile

Follow
Boz2112

1,085 Posts.

49

11/09/17

15:47

Post #: 27133917
Share

Originally posted by hottuna ↑

"repetitional goodwill" has morphed into "reputational goodwill" - oh dear. Neither have any meaning.

As at 31 Dec 2016 - the last time QIN got round to publishing accounts - they had goodwill of $32.3m. Goodwill is an accounting entry that arises when you buy a company for more than the value of their identifiable assets. In QIN's case, this mostly arose from the acquisitions of the Mt Romance business and Santalis/Viroxis.

To impair goodwill, you look at the value of the business it's applied to and see if it is worth more or less than that that. If the goodwill is more than the value of the business less assets, then you need to impair it.

MSB's other intangible assets are largely composed of in process research and development of $114.5m - this was acquired with Santalis/Viroxis. This asset would also need to be tested for impairment and be written down if they don't think that Santalis is likely ever to generate enough income to cover that.

But by far the biggest asset on the balance sheet is the trees - which are based off assumptions that aren't backed up by the underlying assets - assumptions on survival and yield are definitely wrong, and given the only buyer at $3,000/kg was a company that had committed to buy at $4,500/kg, the price assumption is also highly optimistic.

It's highly likely that all of things will need a write down, but especially the trees.

Expand

Still - the assumptions used last time was $2,800/kg so I am not so sure. Maybe they should revalue to $3,000kg as they were able to get that under duress lol.

QIN Price at posting: 29.5¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

IR1

IRIS Metals sniffs 75 metres of lithium in South Dakota, pushing share price up 9.99%

Emerald & Azure score Digger & Dealer awards

LVH

Livehire sees share rocket 91% on takeover bid by Humanforce

Bitcoin: Current State of Play & Where to Next | Swyftx

ORP

Orpheus delays drilling at South Australian play Frome, on traditional owner advice