just saying what I see....
its only good if they can borrow cheaper right?
(unless of course they dont need to replace it because massive cash flows)
Discl (hold)
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just saying what I see....
its only good if they can borrow cheaper right?
(unless of course they dont need to replace it because massive cash flows)
Discl (hold)
I don't think they are planning to borrow at this stage.
They have a $200M facility (untouched) with a banking syndicate. Not sure what the interest rate would be if they needed to use it.
But their $45M CAPEX needs (which covers 'stay in buisness' and growth initiatives) is covered by cash generated from operations.
I think the $200M facility would only come into play if a very large and interesting opportunity came their way.
Unless and until that happens, it will be nice to be debt free. And that is $6.25M less a year in interest charges to look forward to.
Yeah and the cash balance will prob be $30M+ at the FY results, and growing.
Bank facility is just good to have available for unforeseen circumstances (especially with Covid still being a threat) or opportunities that may arise.
Balance Sheet is in mint condition, thanks to the shareholder bail out.
Me looking for another company on the ASX/NZX that is cash flow positive, has no debt, has a growing cash pile, pays no dividends, does no buy backs, and makes no investments or acquisitions.
https://www.youtube.com/watch?v=RqJVa0fl01w
Someone is surely showing up their hand for accumulation...
Would be nice to get 20c hurdle in the interim, at least then we're into half cent ticker size instead of current pesky 1/10c size.