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20-03-2020, 09:45 AM
#16811
Originally Posted by mistaTea
I see Andrew Jeffries and co are snapping up their options this time round.
Clearly very bullish on Ironbark and the wider future prospects.
I even forgot that NZO has a lot of $US denominated cash so that will be worth a hellova lot more now too. These prices have to be a steal. Seems the price of natural gas is not being affected by crude. NZO would still be (even with their exorbitant overhead) in a profit and cash flow positive situation.
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20-03-2020, 09:49 AM
#16812
I think I mesread the first announcement...Just looked more closely:
"The Options have been issued to the Senior Manager subject to the Scheme Rules. Each Option is an option to acquire one fully paid ordinary share. Option holders will be able to exercise the Options in the period from 30 June 2022 until 30 June 2025. The exercise price for the Options is $0.61 per Option. Shares issued on the exercise of Options will be issued on the same terms and will rank equally in all respects with ordinary shares currently on issue"
So if Ironbark is successful, the the SP lifts dramatically then they can exercise their Options between 30 June 2022 and 30 June 2025 and make a bunch of money.
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20-03-2020, 11:36 AM
#16813
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20-03-2020, 11:46 AM
#16814
Quesntion.....is their cash in USD's? Then this in itself is now worth quite a few more NZ peso's!
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20-03-2020, 12:30 PM
#16815
Originally Posted by Sideshow Bob
Quesntion.....is their cash in USD's? Then this in itself is now worth quite a few more NZ peso's!
Just answering my own question. 2019 Annual Report, $45.6m USD, equating to $68m kiwi. Todays spot, that is $80m.
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20-03-2020, 12:45 PM
#16816
and do they have any derivatives that would affect this?
For clarity, nothing I say is advice....
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20-03-2020, 02:00 PM
#16817
Originally Posted by peat
and do they have any derivatives that would affect this?
From memory negligible as their annual has a profit or loss figure relating to currency conversion. But I am only going off what I think.
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31-03-2020, 09:47 AM
#16818
What am I missing...
Not familiar with this company but at a quick glance here is what I see;
I see a company trading at a market cap significantly less than the value of its CASH minus all liabilities, so the first thing I think is this company must burn cash and the cash sitting there is from an equity raising waiting to be burned.
However this does not seem to be the case, this company has generated 486 million from operations over the last ten years and spent 261 in total investments some of which will exist now as assets to the company. It has had a net debt increase of 46 million over that ten year period. This is not only a company that can support itself - it looks like a cash generating machine.
On top of this it has returned 281 million to shareholders over ten years through buy backs and dividends.
I understand the minority shareholding and the rejection of the buy out offer, is there any way the majority shareholder could fleece the rest of the cash, maybe by spending it on something that benefits them over us? What else could go wrong here?
Cheers
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31-03-2020, 11:23 AM
#16819
Member
SailorRob - all I'd say is that right now there is sufficient uncertainty in terms of when the economy (and the use of fossil-fuel reliant technologies) will emerge from Covid-19 for the shareprice to remain subject to downward pressure.
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31-03-2020, 11:44 AM
#16820
Originally Posted by Independent Observer AUNZ
SailorRob - all I'd say is that right now there is sufficient uncertainty in terms of when the economy (and the use of fossil-fuel reliant technologies) will emerge from Covid-19 for the shareprice to remain subject to downward pressure.
Its like having the chance to pay $80 for a $100 bill at present that does not happen very often. Effectively that is what the NZO share price is saying right now. The fact that Oil is below $20 a barrel, and NZO pretty much is a cash holding should be great for NZO. Means they will be able to purchase a distressed asset at super low prices. I hope the board are looking at opportunities in the next year should they arise.
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