Material uncertainty related to going concern We draw attention to Note 1(b) in the financial report, which indicates that Group incurred a net loss after tax of $11,229,405 and had net operating cash outflows of $2,209,811 for the year ended 30 June 2017. As a result, the continuing viability of the Group is dependent upon the successful sale of rubies in October 2017 and raising additional funding to meet ongoing expenditure and existing commitments. This condition, along with other matters set out in Note 1(b) indicate the existence of a material uncertainty that may cast significant doubt on the Group’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.
The above, written by PWC on its audit of MUS's Full Year Statutory Accounts, was published by MUS on 29.09.17.
MUS has net assets of ~$30m, which equates to circa 0.05 book value per share (as of June 30 EOFY) i.e. the company, liquidated, would be valued in the region of 0.05 per share. However, this is based upon a perceived quality of the asset (i.e. the rubies) which could be challenged after the auction.
Given how much MUS lost last FY, it is a prime take-over target or it will need to refinance. Current cash, based upon FY17 operating philosophy, will not see the current FY out. That is not to say it can't still be a success, however.
I know it's not what anyone wants to hear, but I thought I'd share. I bought at 0.08, purely as a speculative play FYI.
MUS Price at posting:
10.5¢ Sentiment: Hold Disclosure: Held
