the assets are worth $290m, the net debt is $170m so there is $120m there. plus there is about $20m in net current assets (not including $30m in cash) so this is a total value of circa $140m net of debt and cash. the market is currently valuing the business at $95m so there is zero value placed on the earnings potential of the business.
selling the Ocean Shearer would be a mistake. there are plenty of assets to make the banks feel comfortable to waiver the covenants and the business is making good money after adding back non cash items. the only issue is the concern about the $15m loan which will be paid and the covenants will be adjusted to allow the business to continue.
WLD Price at posting:
22.3¢ Sentiment: Hold Disclosure: Held
