Another Company that I invested in found it's self in some strife and had an SPP.
The Senior Management Team and Directors as a show of good faith all took a hefty pay cut to show that they too were committed to the future success of the Company...
hint...hint.
The SP has risen from 5c to 39c...so taking up the SPP at 5c has returned handsomely.
So back to WDR...There are a
lot of positives here...it's a given that they had some ramp up issues with the wet season which caused a cash-flow problem...enter Bruce M.
Now focusing on the current state of play:
- Take-off agreement signed with Noble Resources -
To purchase the entire product produced for up to five years -
Tick
- Last Quarterly Report states WDR are
achieving the 250,000t per month shipping target(3Mtpa) -
Tick
- Confident of
Further improvement to shipping capacity following deployment of full fleet in late AUG -
Tick
- Hedging in place for
2/3 of September Quarter Production -
Tick
- Hedging in place for
1/4 of December and March Quarter Production -
Tick
- Cash in the Bank -
Tick
- Quick calculation shows if shipping target of 250,000t is achieved (which is hedged at an average of AUD$120/t) in July and AUG '14...Revenue - (Production Costs + Admin) = +AUD$20.8M
.
So the operation is profitable...It's a taken that the Revenue - (Production Costs + Admin)drops significantly when you use the Iron Ore Spot Price in other months....examples below
At US$88/t...
still cash positive to the tune of AUD$3.4M per month...but how do you repay MBL?
At forecast US$75/t...
still cash positive to the tune of AUD$400k per month...but how do you repay MBL?
- Secured a deferral of scheduled debt amortisation with MBL -
Tick
Today's ANN - "an announcement regarding the
status of the Company’s
project funding arrangements"
It
DIDN'T say Administrators Appointed ...there we go I used the "A" word.
***IMO its all about dealing with the MBL debt...
As Always...more than happy for an alternative view/perspective to be tabled...I just might shine the spotlight on something I hadn't thought about.
All IMO and DYOR
