terminal illness or how long to go?, page-6

Cookie,
When I say things look bad I'm referring to cash flow, not the drop in share price. Such short term drops are of no consequence unless you have a margin loan. Here are my estimates:

Cash on hand 31/12/2010: $39.6m
Projected cash outflow for March quarter: $8m
9% convertible notes redeemed on 23/02/2011: $$8.6m
Projected balance as at 31/03/2011: $23m

So the company begins the June quarter with $23m and $12.6m still owing on the 9% convertible bonds which in all likelyhood will be redeemed unless something spectacular is found at Lempuyang. The conditions precedent have not yet being met for the new 4.75% convertible notes. There is no guarantee this will occur. So where will the company be at 30/06/2011.

One option to avoid the cash crunch in the June quarter would be to sell say 20% of Puffin for say $10 per barrel raising $55m.

Anyhow, these are my guestimates only but other opinions are welcome.