NBS management have just called one or two analysts and major shareholders and have confirmed they have received more cash "from both Malaysia and China" since June 30. Current cash holding is reported to be "still under $20mill". I wish I could be more specific than this, but this is the exact info I have been given.
Connecting all the dots, my reading of the current state of play is this:
On June 15, ETC said they had $10mill in cash, in large part from Nexcode receipts. This cash was due to the printing of one batch of visas for the Malaysian contract. Evidently, they did not get a second batch completed in time for June 30, but have now received receipts for a second batch (i.e., post balance date). My understanding is that NBS get roundly $6mill in cash for each batch, so I'm guessing that NBS presently have around $16mill in cash, mainly form Malaysia.
So my investor's intuition tells me that the Malaysian contract is progressing well, and that NBS will receive their cash more or less on time going forward.
I think there is still some confusion and uncertainty as to what is going on in China. NBS management have told analysts that China cash has started to flow, but have not provided any details as to quantum. My guess, is that it is only a couple of $mill so far.
My expectation is that NBS will be in a position to update the market again re China in a month or so, when a more substantial cash payment is due.
Bottom line: I, like everybody else, was disappointed with the lack of detail provided in results and notes. If cash had been received post june 30 (and it has), then I fail to see the wisdom of not reporting this fact to the market given investor anxieties over china. However, keeping a clear head, I increased my holding by 10% at 44c because I can still so no reason why NBS cash will not flow through this year as canvased. At current prices, investors stand a good chance of getting a whopping 22% dividend payout this year.
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