The latest buy by Jolla Cove of A$50ks worth of UXA shares at just 0.82c points the way in a very, stock style, expensive cash raising -- I hope it all works out.
Despite being very critical of UXA's drilling failures, no doubt many others are as well, I added a few shares at 0.9c and 1c, as it looks as if a seller is drip feeding shares on to the market; maybe one of two departed directors.
About 397 million shares in issue now and at 1.1c are at a market cap of A$4.367m undiluted. This represents the fact that UXA debt and debt swaps have mounted and cash will dive during the first half of 2012 on drilling at Dome5,and a chunk of the ring fenced A$1.6m will be gone on the second phase of drilling at Nabarlek North.
On a better vane of thinking the profitability of GAA Wire-line will help the company's general running costs and with director and staff reductions should soon be near break even -- this is a ball-park-thought as the half year results will be out in a months time.
Debt by 30th June 2012 may surprise as the buoyant US side may well come in at $1 million profit for the year on its own, despite the purchase and integration of a new logging truck.
Good weather for GAA Wire-Line in Australia could also surprise with $600k profit on its own and helping UXA itself with lower cost drilling at Dome5 and Nabarlek.
where to now? - as jolla cove buys cheap stock
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