What the board has been quiet on is how it has treated the $8.7m grant for the intro of the Carbon Tax? Im geussing some of this may actually be in the MGT EBITDA! the question then becomes how much of the EBITDA is on going/real?
With respect to the debt; a number of issues 1. The cash on hand balance dropped by $11m so that is where some of the $13m came from 2. The business spent $4.9m in Capex and at the same time took an impairment on assets? I hope the $4.9 in capex makes the plant more robust and we dont see performance issues! 3. The business only generated $7.4m in Cash from operations. This number should be closer to the EBITDA number of $28m than $7.4M
I am convinced that some of the $8.7m in grants has been taken to the EBITDA because the business delivered an EBITDA of $26m last year so moving to $28m should not result in an impairment charge! (unless the carbon tax impacts on the claculation?)
At the end of the day, the Total net assets are positive and they are closer to the NTA per share! This is good. What I want is a forward looking statement so that I can understand if the $5m in the bank will be consumed by december or not! I would also like to know what the repayment terms are on the debt as the final quarter dropped dramatically from the other 3.
AEJ Price at posting:
$7.20 Sentiment: Hold Disclosure: Held
