hmm.. well if a production asset is predominantly financed by loan with the asset itself being security for the loan then itd only be good for the company in its current situation.. to be able to cover admin and all expenses from a production asset leaving it cashflow neutral then the sp would be like a call option on the 100% owned la bella and minor share in seyschelles projects.. the md could keep his 400k per year sweets while our sp would only be looking at upside seeing that the market cap is sitting at 5mill yet there was some 18mill spent on la bella so far... adding in 25% of the 65mill value of entire seyschelles farmout means some direct underlying value of about 34mill.. thats almost 7 times the current sp or about 20p (2p b4 the consolidation happened)
QFY Price at posting:
3.0¢ Sentiment: Hold Disclosure: Held
