Starting 2H20 with a weak $10m order book, MCE needed quick conversion of the ~$50m tender pipeline. C-19 has put paid to that, and MCE expects weak conditions to extend into 1H21. While a $15.9m net cash position provides breathing space and helps underpin a near-term target price of $0.20 (previously a valuation of $0.45), heightened uncertainty and expected near-term losses means a HOLD call remains appropriate.
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