One hypothesis could be that the big players are making room for a placement. The company is likely to need some equity in the funding mix, so it remains in the interests of SI s to keep the share price low while creating capacity for themselves to participate in a placement at discounted price.
IF this is the case, the company could pull a rabbit out of the paint can by undertaking a deeply discounted rights issue to all existing shareholders. Watch the scramble then!
In the longer term this thing will, IMO, be fully funded with construction commencing in the next 1-3 months at worst. Once in production operations are forecast to generate pre tax operating cash flows equal to the current MC every 6 months.
To all those concerned with the markets lack of enthusiasm, if you are a long term value investor then I suggest you take a bex, lie down, and ignore the short term noise. If you are a trader then worry, because this lack of love will continue until the company achieves financial close which could be days or even weeks away!
All my observations and opinions.
The Pick
MZI Price at posting:
2.0¢ Sentiment: LT Buy Disclosure: Held
