debt is crippling, when you can't make profit to pay it out.
whether the U price lifts and gets them out of trouble, is for the visionaries.
The market, is driven by fear and greed. And right now, fear is in control.
the basic equation, and i'm trying to exclude accounting write offs to get to the all in costs.
from their last balance sheet.
800m debt.
revenue 411m,
costs 356+31
(they indiace other expenses of 309m??) lets leave out.
gross profit 25m + 3 other
less admin 39.5m,
less fiance costs 64m
411+3-356-31-39.5-64 = -76m
But lets step back, and say they have (-76+64) = -12m operating entity, to pay 64m finance charges.
They are insolvent on that basis?
Why is the sp continuing to fall?
and what happens next.
Well, it all depends on their bankers, and if they are happy to extend terms, etc, and allow PDN a phase to reduce costs, and get the bottom line into profit, not loss.
They have significant assets, with a longer term view of u price. In fairness, a hostile takeover, is another path for some company with deep pockets.
I dont hold, but reckon its going lower based on fear.
I think its worth a punt, when it collapses completely.
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