Australia's largest stock trading and investment forum Australia's #1 stock forum

MBN

Click for more information

0.00%

8.3¢ mirabela nickel limited

Their "numbers" looked good so there is no comparison to DML or...

First 13 Last

Share
Profile

Follow
user23

3,914 Posts.

01/10/15

13:11

Post #: 16097417
Share

Originally posted by yifuj ↑

'Short term cash squeeze'? Please, we are in administration! ASIC states that 96% of companies that go through administration end up in compulsory liquidation or receivership where shareholders get nothing.
http://www.dissolve.com.au/information-centre/statistics/asic-statistics/
That is a terrible record, and where administration does end in restructure for the 4% of companies that make it, heavy dilution and loss of value ensues. And we have precedent here; when MBN came out of admin the last time, shareholders lost 98.2% of their shares and that 1.8% holding lost some 90% of their value, a loss exceeding 99.5% in terms of market value.

The Directors have resigned because the Board no longer has control over the company - the administrators do. This is entirely up to the administrators and secured creditors to work out now. If a 'white knight' doesnt come up, we end up in receivership; if a 'white knight' does show up, we face heavy dilution which will have the same effect. Litigation would take up years and millions in legal fees which even if distributed among the 100 odd participants would still mean tens of thousands in split contributions. There's just no way to win!

And before you accuse me of 'down-ramping' (if such word still exists considering we are in perpetual suspension, feel free to check my history with MBN. I've been holding/posting since it came out of DOCA in Feb, so am proverbially, in the same boat. If at the end my shares are enough to pay for the brokerage charged to sell them, I'll count myself lucky.

The sentiment of some on here reminds me of exactly what happened with DML, Newsat or even the last time MBN went into admin. Some people just remain unbelieving until the very end, and even beyond that.

Expand

Their "numbers" looked good so there is no comparison to DML or MBN last time.....IMO.

Q1's +1.37US/lb and made a net cash profit of 8M USD (after 2.79M USD capital expenditure and 3.4M USD payment for the quarter)

Q2's only +.7US/lb and cash at hand and on deposit dropped from 25.28M to 16.24M USD (after spending 9.11M on capital expenditure and .51M on payment for the quarter but they did say they had a substantial backlog of payment from their nickel sales, my calculation was ~1.5-2Kt), and then cash went down to 10.09M in 1 month, than a voluntary suspension and than appointment of voluntary administrator to further discuss the current capital raising...........where did that 6.15M USD went (I reckon its the quarterly payment.....so what is the problem????)

IMO, the "number" stacked up, they went into voluntary suspension when nickel price was 4.3US/lb and REAL was 3.5 (and they only used REAL of 3.07 to get COP down to 4.76US/lb), now REAL is around 4 (admittedly with a lot of intervention from the Brazil bank but how long will that last) and nickel price looks like it has bottom and going back to 5US/lb.

It's nothing like DML or last time MBN went into voluntary administrator, IMO.

MBN Price at posting: 8.3¢ Sentiment: Hold Disclosure: Held
8 Upvote

0 Great analysis

Reply

Top Stories

CHN

Chalice jumps on Putin nickel export ban threat – but then there's bad news

GTR

GTI extends uranium mineralisation at Lo Hema through development drilling

CU6

Clarity progresses SECuRE trial with positive safety results

3 stocks with antimony news on Thursday

DXB

Dimerix begins recruiting young kidney disease patients in Mexico for Phase 3

There are more pages in this discussion • 138 more messages in this thread...

First 13 Last

Add MBN (ASX) to my watchlist