capital raising coming?, page-23

yeah massive asset sale :)

before people rush in,,I reckon they need to put things in perspective ,,,,,,you need a super strong cash flow when your debt is $4,600,000,000 (approx. assuming fully drawn)

put it in perspective,,,,,,,,,200K.......,,,I think it will cover LESS than 8 HOURS interest on 4.6BLN at 5 %PA ,,,,,,,,
(4.6BLN*.05/365) =630K/ day if fully drawn
(if I got the number wrong, its been a long day,,,,so check it for me,,its amazing the interest/ day that needs to be serviced.......) as I said,,equity will get nothing,,but the bond holders will get paid every single month....no soup for you,,,i mean DIV



Hi GHT

Interesting question. Ok off the top of my head,,not fixed,,,general rant :)

Id appoint Sydney Guy CEO :)))) (step one without delay :))) lol


Id then put the company into a halt

then id do a cap raising immediately......Id grow that register by one billion shares for a total of 1.776BLN

Raise it at $6BLN

That brings in 6BLN cash

Id get rid of the debt and the ongoing cost of 630K in interest/day that should be accumulating for the benefit of shareholders

Debt paid out of 4.6BLn.....

Leaves me with 1.4Bln in cash

Yes the shareprice has been smashed but hopefully for the short term, money left for working capital and investment to allow company to threaten a buyback....restore DIV at right times

All executive given a salary of no more than 250K and the balance in shares,,,its not rocket science,,,,dig it up,process and sell it

Assuming margin can be held at 200$/OZ, kill anything that threatens that.......

Production - anything costing more than the average price of gold over the last 2 years,,,,,,,,,,put up and sold, add to cash balance

Id sell PNG, big deposit, cant ask shareholders for more money to develop more which will XXXX up and cost billions before we see a $.........that brings in more cash,

Id sell any mining surplus equipment no forming part of asset sales...more cash

Look at taking small hedges on oil price as cost of energy is falling in WTI as USA moves to being an exporter (absolutely incredible but its happening)

Sell Telfer,,,it costs to much, is going deeper and workforce and management have not been able to capitalize on its resource since it went undergroup....bring in more money give someone else a go

hopefully within six months there is 3 -4 BLN in the bank and the suite of mines is marking a higher margin as the high costs ones are gone........company should be EPS positive, there would be more writedowns probably,,but that's ok,,,no tax on future earnings which should spike becaue no bloody huge interest bill

Given the massive tax losses and further writedowns expected,,,not like they are going to get book value for a mine that produces an ounce for a loss.............there should be even more tax loses,,,so no tax on the small more efficient and profitable mine suite for years............

Hedge some future production as required to protect some of the future cashflow and required budgeted margins

Now that there is a few billion in bank,,,,,and hopefully shareprice stable and the business actually making some money but no having to pay tax for a few years,,,,,,,,,Id mine those stockpiles bigtime (low costs and stockpile the gold to take immediate advantage of any price increase unlike in the past (IE gold was high and ncm missed production)

It review the two majors Cadia and Lihir and get a no bullshit assessment of what they could happily produce over the next 3 years....and on to 10 years and on the basis of that Id then set a budget in a simple document and strive to achieve it.......

As there are reportedly decades of resources Id want to learn and then report exactly a 10 year plan,,,,,,,and announce expected divs of this dual mine operation.......

If the POG AUD tanks,,then there is no debt and enough working capital to survive a long time

If the POG AUD rises a bit, the margin should expand bigtime and EPS should explode with the smaller more profitable operation not subsidizing 100's 1000's of high cost ounces,,,,,,,the dual operation CAdia and Lihir would make more than 200/ounce even if the price fell to 1000,,,,,,,,,(but some would be hedged of course)

dual operation also means a lot less head office admin charges, more margin, more profit, more cash being accumulated

This allows NCM to grow a huge stockpile of cash and generate cashflow for at least a decade.........at the appropriate time Id then trade against the shorts via buybacks, restore DIVs so it gets some attraction for long terms to hold,,,,,,,,,,,,,,,,,,,,,,,

But all depends on market, but I think a debt free company producing 1.25-1.5M ounces at a good margin ,with tax losses, paying a div and threatening buybacks wouldn't get the same equity treatment it deserves now...

Dramatisation,,,probably wont happen :)

hopefully then its down to Cadia, Lihir (sold telfer, aftica, mofu deposit.........

anyhoo,,better take my medication now