$72m cash, $14.7m debt = net cash $57.3m divide by 385m shares = 14.8c/share cash backing.
Assume they hold their promise to relist by 2017, they are burning $800K per quarter ($3.2m pa) on admin fee. They also promise to look for a copper project to buy and that was several years ago... still nothing!!! Can you trust their promise?
Than $14.7m debt interest payment is much higher than $72m interest generates.
By 2017, you probably left with about 10-12c/share cash backing.
The last traded was 6.9c, but most holders paid much higher than that (eg 2013 shares were traded between 12-15c).
De-listed from ASX does NOT mean everyone gets cash in company's bank. It means it becomes a private company not list on stock exchange.
You can only get cash (when not listed): 1) company decides to distribute cash back to private holders; 2) place company in voluntary administration (decide by directors) to wind up the company... VA administrators will take massive cut (eg 50% of asset ie cash).
Usually, company will distribute cash after loan repaid... than place remaining in VA (to minimise work).
Just IMHO
MOL Price at posting:
6.9¢ Sentiment: None Disclosure: Not Held
