Bullish NewSat plans more satellites

Stuart Corner
Wednesday, 30 June 2010 17:05

IT Industry - Listed Tech

NewSat has yet to confirm that it will launch its first satellite, Jabiru 1, but is already planning additional launches, despite appearing to have been passed over by NBN Co for the NBN's planned Ka band satellites.

NewSat told the ASX that it was "closing in on the development of its first $400m Jabiru project," and said "the board is also now looking beyond Jabiru-1 to a number of other satellite launch and operation opportunities in the region to take advantage of established demand, slot availability and coordination, and access to finance which will build momentum to rapidly grow NewSat into an Asia Pacific satellite powerhouse."

This is the second time in as many months that the company has issued a statement to the ASX talking up Jabiru's prospects, but without making any specific announcements. In between it told the ASX that it was "set to record its eighth straight quarter of sales growth," but again gave no specific information.

The company has set up a wholly owned subsidiary, Jabiru Limited, "tasked with developing satellites that synergistically complement [NewSat's] ground stations and teleports in Adelaide and Perth [which] comprise the dominant part of the substantial tangible asset base of the listed company."

It said that, with Lazard and ArgoSat advising, it was "confident of securing the debt component for Jabiru-1, together with enhanced credit risk insurance," and that Jabiru-1 "is currently in the final stage of technical specification and spectrum co-ordination."

}The company also told the ASX that it expects to post its first EBITDA profit when it reports its 2009-10 results in August. "Today's cash flow in NewSat is growing steadily as the company continues to accumulate major business and industrial clients, especially in the oil, gas and mining sector," it said.

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