Asset values are useless if the company isn't prof
A company that does not earn a profit is worth ZERO. It doesn’t matter that the company has a billion dollars worth of assets on its books. Or it only matters to the bondholders when those assets are liquidated at a fraction of their book value to pay off (some of) the loans.
Those Q3 accounts were not audited. The next hurdle for Northland will be closing its year end accounts and having to go through the audit. Then we’ll see what those billion dollars of assets are worth.
The issue here is that Management has been incapable of completing this project on budget, and has ramped up the debt to cover cost overruns, wiping out shareholder value in the meantime. Why doesn’t Management come out with a cash cost per tonne figure, incl. debt service – that would be useful.
IMHO they have set the Monday date to give the Board time over the weekend to prepare a press release detailing Plan B, when they can’t get this financing off the ground.