^That would be for current holders only, is that correct?
That would be correct but they would announce it and others could then probably participate as well. Normally (not always) the share price goes down on such an announcement because these raisings are done at a discount..
I would pick that they will do a placement to institutions - and then either a rights issue or an SPP for current holders. Amounts and/or rights ratios will depend on how much they need and the investment appetite. That's what they pay the big bikkies to financial advisers to gauge correctly!
Cheers for the replies Snapiti and Benjitara. No offence taken either. I am well aware of the coal price problem and agree Benjitara that now is probably the best time as any to get a stake.
As it happens have just come back from the AGM held in Wellington today. Very constructive and managed to glean that there will probably be another Capital raising of some sorts in the near future although most would have worked this out anyway. Spoke with 2 of the directors and they are both of the opinion that the NZ operations will be cash flow positive this year (or at least break even) and that the escarpment project is definitely earnings positive. THere will be synergy benefits. Looking at the quarterly out today I see $5m of admin costs... on revenue of $9m. So any extra revenue will not add to this cost. Also legal fees and time will now be a lot less (hopefully)
The coal that they will be selling for export is worth more than the coal that they are currently providing domestically.
The infrastructure is in place for them to go ahead and they are hoping to get up and running early 2014 once 25 permits have been signed off etc.
Will be interesting to see where they go from here. But any rise in the global coal price will significantly enhance their profits. Or a fall in the Kiwi will be just as effective.
Disc, still unsure but not as negative as I was prior. Hold a small holding, (my brother advised me to buy some and I thought why not) and will look to top up if price dips on rights issue or other capital raising. Anything under 15-20 cents you could almost treat as an option with limited downside....
Over 50% in admin costs? That could be a game stopper right there - for most but not all. If the price is right, they will get support. Worth keeping an eye on IMHO.
Over 50% in admin costs? That could be a game stopper right there - for most but not all. If the price is right, they will get support. Worth keeping an eye on IMHO.
Yeah but do keep in mind that a lot of those will have been legal fees which should be behind them now....
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Originally Posted by Radler
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