Did you know that longtom only had a cash operating gross margin of 11%?
Even if NXS can sell 50% of longtom for $200m ($45m more than AED where willing to pay). That still leaves them with:
1. $160m of debt;
2. 50% of what seems to be a barely profitable asset*; and
3. Crux which they will have to give away 90% of to get anywhere near being able to fund their share of the US$650m downstream capex.
I have just noticed that $8m, of the remaining cash balance ($33m) is in escrow! Therefore based on my earlier post NXS will be sitting on available cash of $3m at the end of June 2010. Not quite enough to pay salaries for another quarter and certainly not the bank.
Richard Cottee has a huge challenge ahead of him. Unless he can pull off something spectacular, get ready to open your wallets for a capital raising. It's all there in black and white.
*who would they sell it to, and for $200m!
NXS Price at posting:
26.8¢ Sentiment: Sell Disclosure: Not Held
