Good summary. I also attended and share your sentiment. There are some projects they are completing and have this quarter that should see some milestone payments come in (weapons range). This matches the comments around revenue finally increasing. Some must have already landed as MO was confident. It does feel like they are turning it around but the reality was they bit off some big projects that don’t deliver / pay quickly. If it lines up the next two quaterly reports should look much better. I asked the question around the pipeline and chasing mining companies as we need some diversity of clients, and clients who value time to market. Defence may be lucrative in the medium term but CCE needed/needs short term cash.
Investors should recognise that the cash wasn’t burnt, a lot went into BOO projects. We will have a 3-5 mil asset in Garden Island on the books that will bring revenue next quarter is seems. Northam when completed will be 8-9mil asset (our half) and we can keep the revenue stream or sell it. So in one sense selling both these could yield another 10-15 mil revenue this year if needed. I don’t think they will necessarily do that but you need to understand the revenue situation in context. My view is that we did BOO too early with a weak balance sheet and that’s why we are having this SPP. The flip side is we will have two big assets that form 15-20% of the market cap alone rather than just wave ip. This is a good thing.
I did my bit and participated in the SPP after evaluating the pitch.
CCE Price at posting:
3.0¢ Sentiment: Buy Disclosure: Held
