BCB & NHF

Hi Glen,

This week, Bowen Coking Coal (BCB) announced that it has executed a Heads of Agreement with Taurus and New Hope to restructure its debt to remove any near-term balance sheet and cash flow pressure.  Bowen will not need to make any debt repayments until March 2025, however, a condition on this debt restructure is that Bowen will need to raise at least $25m in additional equity. We they need more, but whatever the case, there will be significant dilution of existing holders to keep them afloat. The stock remains in suspense until the refinancing is complete. We took a loss on BCB in July and it still feels the correct course of action.

Nib (NHF) recently reported revenue up, net profit up, but their shares fell heavily. The big issue for the private health insurer were margins which came in well below analysts’ expectations for the June half, dropping from 9.7% in the December half to 6.7%. There is a lot of pressure between hospitals and insurers at the moment, and this is hurting both sides.

• Additionally, the company’s 2.5% policyholder expansion was below their 3% to 4% guidance.

The sell-off wasn’t overly surprising to MM, and we don’t have any interest at this stage.

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NIB Holdings Ltd (NHF)

LAST UPDATED 20/09/2024 13:53

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NIB Holdings Ltd (NHF)

LAST UPDATED 20/09/2024 13:53