Honestly; I have never seen such an unfavourable financing for shareholders. Consideration of 20m shares (@.1875A$ = 3.75mA$) for the placement of 12mA$ in Convertible Notes that have a 10% p.y. coupon and additionally a 23.15mA$ share placement that goes with freebies loan notes with a face value of 15.7mA$ + 10%/12% annual interest on top for year 3+4/5 ? +5m consideration shares for the participating brokers. Jeez - how desperate have they been to finance this processing facility + mine.
The problem of MOO is simple and called intransparency. It is almost impossible to get a clear pircture of the proposed revenues, earnings and cash-flows of this company. No details of the BFS have ever been published and no details on commodity prices etc. are given. If you are new to this stock you have to dig very deep to find any important information at all.
Further there are a lot of inconsistencies, for example only 500k$ cash inflow from operations in Q1 although they claimed to have sales in at least three different minerals. Further the proposed revenues of the 5 contributing minerals add up to way over 100% in the latest presentation which is not professional at all.
Investors would be interested to know what cash-flow could be expected at what time and not in some picture about the processing facility.
If Ilmenite accounts for 60% of the future revenues and hey will produce 147k tonnes in 2010 and will generate about 30m A$ in revenues from Ilmenite the total revenues will be in the range of 50m A$ annually. But what about latest fertilizer price hikes - is MOO hedged or bound to some sales contracts conditions? what price are we talking about. They mentioned a 15% revenues contribution (7.5m A$) in 2010 for 48,000t of Apatite (35%+ P2O5) which is 156A$/t of Apatite. Pretty pessimistic if you ask me and what about the Feldspar stuff - what is the expectation for revenues and after all what are the proposed opex at full production and what amount are we talking about to bring this operation into full production.
This company is a total miracle to me - may be someone can talk to the management to recommend them an urgent improvement of investor relations and cimmunication of the Goondicum project.
Cheers
Lenni
MOO Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
