Below is a reply I made a few days ago after a query from Disco. Does anyone have any comment, without referring to some hick WA primary school or the best date to celebrate Invasion Day ? Is my analysis reasonable or rubbish ?
"Here is a very rough figure, Disco. At present, allowing for R & D rebates, expenditure is running at about $4m p.a. Whether it continues at that rate is another question, but we have to use that as a starting assumption.
"Hence net revenue from contracts needs to match that figure if NOR is to stay afloat without a capital raising. A really wild guess, but maybe generating $4m net requires annual contracts of $ 6m, i.e., cost of servicing that contract is $ 2m. So $6m of contracts is the break-even point.
"Of course, if they landed contracts of $10m +, they are a bargain at 3c. You would have to say, though, that their track record on delivering is not good."
Below is a reply I made a few days ago after a query from Disco....
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