Nam Lee Pressed Metal

[dydx]

Dydx,
Could capex spike from 2014 onwards when they move to a new factory and replace their machinery?

In the latest FY12 (ended 30Sep12), Nam Lee generated $17.0m in FCF on an after-tax basis before accounting for changes in WC items and capex. In the same FY, Nam Lee spent only $1.7m in capex.

Assuming in FY14 Nam Lee just generates the same amount of $17.0m from FCF but has to spend the same amount in capex to be funded entirely by own funds, this would simply mean that there will not be an increase in cash reserve in that FY. Based on the fact that Nam Lee already holds a huge pile of cash reserve, I suppose high capex in a particular FY should not put a dent to the group's B/S and finances, nor a stop to or reduction in dividend payment.