News: EHL Emeco Holdings says fy net loss A$180.5 mln, page-4

Not really, I did really well with NRW and was looking for other mining services companies on the back of this mining recovery story. I like to pull apart the detail given Im not a chart trader given my debt and finance background. Boart Longyear is another one Im digesting at the moment for entertainment.

But to answer your question, nobody would know but as a general opinion if you think about it, they are getting 9.25% on debt they bought at probably 60-70 cents in the dollar, so effectively 15%+ interest on their debt money. So keeping the business going and paying its interest bill would be a big driver. The value of their equity stake would be secondary. The other point is if the company stopped and sold up its equipment, it wouldn't be able to cover the debt. So they wouldn't let that happen.

I was more saying, that the numbers dont add up when you look at the ability of the company to pay the interest firstly ($45M) then have cash to pay for equipment replacement and rebuilds (Say $40-50 , depends how old it is I suppose). So they need to get at least $100M EBITDA or even more to tread water. And the telling point is the last time I could find when they did those sorts of numbers is when they had $1B of equipment and mining was really booming. So they have to do it with half as much equipment and mining is going ok but I dont think anyone is suggesting its booming like it did in 11/12/13 etc.

And when the numbers dont add up its usually equity that cops it.