It's the reason I got out. Working capital doesn't look too flash and despite a couple of years of "imminent substantial production and cash flows" statements by management, there's nothing to show and I won't be convinced till they can demonstrate strong, sustainable production. $16 million is a credit facility which matures in late 2009. The total loan is $22M and they still have (or had as at 31/3/08) a further $5.7m which they can use. They have already breached certain convenants (EBIT, gering ratios and other metrics) but the bank (Fortis I believe) has waived the covenents.
Good luck.
MAE Price at posting:
0.0¢ Sentiment: None Disclosure: Held
