Net profit isn't cash movement though. Depreciation is part of the CAPEX and isn't cash as well.
They also have tax losses carried forward which would mean no tax until those are used up.
So EBITDA would be closer to cash movement.
Once the tax losses are used up the tax would be 30% of net profit but of course net profit includes depreciation as an expense so we can't say for sure how much that would be. Even if we assume the whole $175m is net profit the tax is still only $52.5m leaving $122.5m a year. 7.6 years x $122.5m is $931m. So absolute best case scenario they are only paying back $931m. This equals about 12% interest rate. Of course we can expect a better cash flow with lower tax amount so an even higher interest rate and total payback can be expected.
TMT Price at posting:
57.0¢ Sentiment: Buy Disclosure: Held
