Companies with cash backing above MC

[resourceboom]

There are at least a few companies out there with no debt whatsoever, strong and safe positive cashflows and trading at less than half their NTA and at or below cash backing.

.... ooops, actually, yes like this is what I'm looking for!!

 

[resourceboom]

Im sure no-ones interested but Im looking round for plays that don't require huge capital expenses coming up, rules out a lot of resource plays.

Debt is currently poison, and even the need for financing can cause massive damages to a companies share price, which is self fulfilling destruction if massive dilution is required to raise funds.

PPP was a play I was getting quite keen on, had around 20-25c ps cash, and was trading at 19c, and approx 3 mill barrels oil to make from Tui. I bought a couple for the smsf, but then the buying up from NZO came in, and now its staying around 25-30c, whilst NZO is awaiting approval to buy more shares!!

 

[cuttlefish]

But AEP I think could easily sell IBA and be well above; I know, technically still doesn't count.

And AJL, not sure, someone might need to help out here, but must at least be very close (after repaying debt, once cash from SGL sales is finalised) I know, technically still doesn't count.

Yeah I got the drift of why you included them - I'd agree they do fit the vein of the thread - just thought I'd mention it so justiceotp didn't think I was unfairly singling his example out.

 

[cuttlefish]

ok ill try again then with one last one

MAK - Minemakers

about 100 Mil in the bank and MC of 60-70 Mil

Sorry to pull you up again but as far as I can tell from MAK's last (Sept) quarterly they had only $10 million cash in the bank. They also had about 14 million 30c options expire in Sept - but even if all of these were exercised that would only put another $4 million in the bank - so overall probably around $14 million unless there has been some cap raising or something I don't know about?

 

[So_Cynical]

There is a bucket load of resource stocks with cash above MC, but only the Goldie's
have any real hope...broadly assuming, mined commodity prices remain at present levels.

Gold is still very profitable to mine....especially in Aussie dollars.

TRY - TROY RESOURCES

• Market Cap: 48,884,173
• Cash 60 Million (AUD)
• Debt 0
• Hedging 0
• last quarter Gold production 17,217 Oz (2 operations)
• Cost per ounce (AUD) $698
• Average price gold sales (AUD) $968

Due to the recent run the gold stocks are having, Troy no longer has
cash backing above MC......current Market Cap: 76,472,099

 

[justiceotp]

Yeah sorry cuttlefish you are right from memory they had about 12 mil in bank at last cashflow report, the 100 mil i had in my head is what they are planning to raise down the track for the cost of setting up the mine.

 

[resourceboom]

Looks like BRM - brockman's been going for a bit of a run lately, now above cash backing too.

 

[justiceotp]

Yeah the one that i submit that actually fits the guideline of the thread had to go and prove me wrong and get its MC over CF, but I'm holding quite a few of these so I'm happy to be made wrong.

 

[suhm]

Thought this thread could be revived, there must be a few net nets on the ASX, I haven't really found any yet so if you care to share your cigar butts that would be great.

 

[mr. jeff]

Well - not strictly cash, but TBR has approx $100M in gold and cash backing a market cap of $120M plus a mining operation with good life and 50kOz/year production plus exploration near PRU.

Also, MLM if you have a look at a recent post, they have a big chunk of MTE and others that is worth more than their current SP. Worth checking that too. At that time (SP values changed now) value of assets was 57c and they were trading at approx 40c.
This has changed again and probably for the better.

Although neither are cash, they both offer good options (of course gold could tank now) so it is not exactly worthy of the thread but hope it is of help to some readers.

 

[suhm]

Good old TBR, have to go into the notes to realise that they are holding so much gold in the bank, you have to factor in tax when they sell the gold. I sold out at these sort of levels about a year ago when Billis and co did the iron ore deal for RND so they have another year of gold stored in the vaults. I would rebuy if went down further even with the lack of promotion.

EXS is probably the closest to being a net net. Basically its cash backing is about its market cap but again it also has to pay a large amount of tax but is going to pay this out as a franked dividend. U get a gold mine and copper gold exploration tenenmants and a royalty for copper production for free. Don't see it going up by much though. I hold. Will probably sell a bit ex div.

 

[mr. jeff]

Exco was a great ride and a no brainer with their gold production and takeover potential from IVA but unfortunately all that is really in the past now as they are just in a holding pattern, so if you hold, then good, if you don't, then might not see much of a capital return if you buy now. Potential if you want some franking credits, but I am not well versed in exactly how much and when the capital return is to be completed.

There must be other cash backed stocks. Anyone?!

 

[stockGURU]

Intrepid Mines Limited (IAU)
Mount Gibson Iron Limited (MGX)

Any others at the moment?

 

[MrChow]

Anyone have any further cash backed stocks?

KAR is the famous one, ACR is getting close-ish as well.

 

[Klogg]

Last I checked, MPO (Molopo Energy) was quite close.