ACL 12.5% 0.9¢ alchemia limited

Doing the numbers

  1. 784 Posts.
    I expect there will be a couple of weeks of rebalancing as fed-up shareholders get out and new ones who are doing the numbers. It wouldn't surprise me if the SP stays under pressure for a little while, maybe drop lower.  In the meantime, I have been running scenarios but am a bit puzzled by their proposed cash burn at the end of 2015. I know ACL has a number of very knowledgeable and loyal (but fed-up) shareholders. I would appreciate comments on their cash burn needs.

    ACL  say:
    They then go on to project a 70% cut in burn rate by the end of calendar year 2015.  Sounds impressive but that means a burn rate of $2,232,00. That sounds a lot to keep the fonda patents going and collect cheques and pay dividends.  They should only need a couple of board members, outsource company secretarial work and have an internal accounting and office support function. I was expecting somewhere under $1 million. Can anyone explain why such a high burn? It is equivalent to 4.8 cents dividend between 2016/2022 so it is significant in doing the numbers.

    Maybe they will keep reducing, I think they need to.
 
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