At least on fundamentals the company is trading at a massive discount to assets. Problem is are their current thermal coal operations enough to offset further capital erosion? Looks to me like its a tough road ahead.
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At least on fundamentals the company is trading at a massive discount to assets. Problem is are their current thermal coal operations enough to offset further capital erosion? Looks to me like its a tough road ahead.
I think we can wait with this company for a while now in that it probably will go nowhere till the price of coking coal improves. Because if it does not (and I do not think it wont) then I think this company will find it hard to carry on as a going concern. But if and when the price of coking coal does improve or signals that it is about to then we may see an appreciation of the SP.
I'm not sure how one values BRL's assets when so much consists of mining licences and properties - coal deposits - which have such an uncertain future value! I made good profits in the early (BTU) days but now regard the few shares left very much in the same way as a speculative oily. One for the future, perhaps.
Well again, my offer sat just above today's high and wasn't hit. I'm a bit surprised the sp fell away like it did this afternoon -- was expecting at least three days of a bounce-back. We might find that instead the low 9s (asx) and low 10s (nzx) now form a resistance to any short-term gains.
they closed at 8c on the ASX, good discount to the NZX currently. I'm not sure if we've seen the bottom yet though!
I notice that in thier Mines and Money presentation (placed onto NZX on 24th march), p 9 says
'Cascade – New Three Year contract with cement plant'.
I think it was about a year ago Holcim said they were closing the cement plant in two years. Does that mean Holcim have changed thier minds again? Or do they just walk away from the supply in a year or two.
Capital raising it is. Should know the damage tomorrow morning.
Are you privy to the details of the announcement, biker? All I'm seeing is a trading halt. You could well be right of course. I wonder just how much cash and debt they do have. I'll go digging into their latest financial report for a look. Back soon..
edit: Current assets of $21m of which half are cash and short-term deposits, against current liabilities of $18m (with total liabilities of $290m). Doesn't look desparate for extra working capital or debt repayment.
BC