I dunno any company that would have an interest rate of 20% right now. Also its a convertible bond, which effectively is an option which provides them further upside.
Singaporean cash rate is ~0.5%, 5% is a very good rate for them.
IMO the deal stinks, they let the SP trade to 11.5 then accepting a SPP at 12 cents and 56% of the company for 15 cents. 1 month ago DML was trading at 18-25.
They should've not allow DML to trade and let CFC go down with the rest of us. They continue to let DML trade was because they know CFC would not approve the deal, and because of this dragging down the SP further.
Whats the point of have a board when their interest is themselves.
Having said all that, i think the SP of 11.5 is undervalue, hoping to see an uptick in the coming weeks. If they can get production upto 2,500 tonnes per month (25% increase in current production) we should see the SP hitting 20ish cents.
DML Price at posting:
11.5¢ Sentiment: None Disclosure: Held
