In February the Board announced we were experiencing higher than expected sea farm mortality. As noted in our previous announcement, the mortality event will have an impact on our FY23 harvest volumes and our FY22 and FY23 financial results. NZKS is still working through the associated financial impacts of this and will provide a more detailed updated on sea farm mortality and the expected impact on FY23 earnings as part of our results announcement which is now expected to be on or around 13 April 2022. NZKS remains committed to minimising sea farm mortalities and is continually assessing the options available to do this.
Although we are still finalising our financial results, we continue to expect our FY22 Proforma EBITDA to be in the previously indicated range of $6.5m – $7.5m.
thought something was up .... cap raise wonder what the discount be?
More interesting would be the reason for the Cap raise ... Given that they have not yet the consent for their deep water farming - do they need new capital just to pay the bills? This would be frightening ...
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"Prediction is very difficult, especially about the future" (Niels Bohr)
Yeah there’s really not a scenario where Npat wont be negative (~2-3m) and probably breakeven at best in F23. Echoing my comment yesterday for a capital raising for the blue endeavour, jarden came out and said nzk might need one even without it. And oh dear - estimated spot net debt of 7.0x and 4.0x to FY22/FY23 EBITDA. Very high gearing - how could they not consider doing a capital raise?
If i was still a shareholder i surely wouldnt want to participate in a rights issue anywhere near a dollar
Originally Posted by Fiordland Moose
Aye saw that. And jarden came out with an u underweight at 1.15. I dont believe their f23 forecast for one second and that implies a fy23 pe of 80.
Its my strong belief this company will require a capital raising in any scenario. I suppose brokers dont want to overly piss off management and the board if they want a gig.
based on my back of the envelope gearing calcs and rough and ready EBITDA guesstimates I'd say between 35-50 million capital raise. That's just for the status quo. If they manage to get blue endeavor across the line, even bigger.
Thats a big capital raise relative to the market capitalisation. Which would necessitate a sizeable discount.
More interesting would be the reason for the Cap raise ... Given that they have not yet the consent for their deep water farming - do they need new capital just to pay the bills? This would be frightening ...
Great point. Any chance the consent could have been received? A decision was due to be delivered in March.
BTC went to $69K and now $16K. Good thing I’ve been warning you since it was $3K! I was right!
Great point. Any chance the consent could have been received? A decision was due to be delivered in March.
Pretty sure they would have told the market if the consent would have been received (that's called continuous disclosure) ... and I guess they can't really raise capital for a project which they hope may be consented at some stage - or can they?
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"Prediction is very difficult, especially about the future" (Niels Bohr)
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Originally Posted by bull....
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