GREY:ZARFF - Post by User
Comment by
pablo87on Aug 09, 2017 8:33pm
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Post# 26563902
RE:this quarter June 30th 2017
RE:this quarter June 30th 2017Decent. Consumed $2.5M in first half, expects a little more production in 2nd half, also they made paper money on hedges. So 2017 may be cf neutral and production slightly up. Not sure why they operate w/o a credit line though.. sb good for at least $20M...Also 5% dilution on o/s shares due to options. Of note debbies are convertible into shares in 2019.
The market is valuing Zar at 3.64x FCF ($35M my proj net debt + $16M mkt cap)/($14M proj fcf) which is very low. It should be at least 4.5x which equates to 87 cents a share.
Disclosure: zero shares owned.