Potentially fantastic reward but then as I get myself overheated thinking about it I read the annual report to cool myself down.
The voice of prudence speaking to us from the past says wait and see.
"In response to the difficult trading
conditions experienced during the past
year, in February 2016 the Company
agreed a number of amendments to
the terms and financial covenants of
its Syndicated Loan Facility with the
members of the Syndicate. On 24
August 2016, the Company received
approval of some further amendments
to the terms and financial covenants
of the Facility and committed to
an increase in the annual principal
repayments over the remaining term of
the Facility to $75 million, payable in six
month instalments of $37.5 million, with
the first payment due on 31 December
2016. The principal repayments will
be funded from the proceeds of the
Company’s ongoing vessel sales
programme, operating earnings
and any additional funding options
available to the Company."
What the "additional funding options" may be? Now's the time to be asking.
Shareholders supporting this company are doing a fine thing; a 100m market cap is a travesty but also unfortunately something of a self-fulfilling prophecy.
MRM Price at posting:
31.0¢ Sentiment: None Disclosure: Not Held
