Afroboy always draws parallels b/w MAE and View Resources (VRE). Below is an excerpt of Views Dec Q 2007 report lodged on 25 january 2008. They appointed administrators two weeks later to review their operations (8 Feb). By the way, I'm not suggesting anything other than have a read and apply an analytical approach.
Excerpt below - VRE Dec 2007 Quarterly report.
“During the quarter View issued 53 million shares at 20 cents each to institutional and sophisticated investors to raise $10.6 million. This money was allocated to working capital funding`at Bronzewing during the difficult ramp up period as well as meet the $2.5 million net cost of dehedging.
The company is currently finalising the sale of its 30% stake in the Carnilya Hill Nickel Project for a total package of $25 million consisting of $22.5 million in cash on settlement plus $2.5 million in future royalties. This cash will be used to immediately repay all outstanding debt of $13 million ($8.5 million in a cash draw down facility and $4.5 million to cash back the environmental bonds) giving the View a solid balance sheet as well as better net cash flows over the next 12 to18 months. With no amortisation debt repayments or interest costs the Company will save over $1million in interest charges alone.
View is now fully focussed on delivering cost reductions over the current quarter that will bring Bronzewing into a cashflow positive position as soon as possible. With rising revenues associated with ramp up combining with falling costs a break even position is forecast in early 2008 with a positive cashflow thereafter.
December actuals show operating costs of $9.5 million against revenues of $9.0 million, thus Bronzewing was close to its first operating break even position. This increasing profit position, combined with cash from the sale of the Company’s 30% stake in Carnilya Hill, will continue to build balance sheet strength for View in 2008.”
MAE Price at posting:
0.0¢ Sentiment: None Disclosure: Held
