Hi again, yes definitely net receivable/payables should be the number. I was thinking that is how the $3m was made up but could be wrong (ie $4.3m sales less $1m payables to get Sept qtr receipts with any July rcpts offsetting any extra costs. The June qtr cash outflows were a little higher than I expected but possibly due to prepayments such as Insurance? etc which may mean Sept outflows are a bit lower but just a guess. Also the remuneration savings will cut in which should help.
For me the Year on Year number is most important as that is what goes in the Yearly a/c's comparisons/guidance. I don't like IP reporting as most wells never consistently produce at that level and leads to overvaluation of EV if not careful. By that I mean me and I prefer to use lower numbers which gives some upside when looking at risk. The forecast yearly average rate gives some fat as they produce more at the start so using a lower average number gives some confidence if things pick up one day. I understand your sequential focus and think that is why in some ways we are same same but different in our analysis which I think is a good thing as it gives better perspective. Unfortunately our fundamental analysis counts for nothing in this sentiment driven market but it passes time and keeps us nutters amused
I expect a lot of thought and work was done by the Bank and company to structure the loan facility. Ultimately and possibly naively I think the bank would want their loans to succeed and also think the maturity fits nice with the options which adds a possible perspective on the balancing of priorities over loan period and importance of getting the NS field production with good reliability. It may be wrong but something to consider when balancing possibilities. I'll watch this aspect with interest but I have no real insight into this aspect as generally speaking not a big fan of debt.
Cheers
ps. thks also DB for your kind words. I hope it adds to discussion. Also cmon, just opened another session so this didn't time out and scanned your post - remember Lassie was a dog! Don't be to hard on yourself, we've been studying the wrong sector for now but maybe one day the effort will pay off.
SSN Price at posting:
0.4¢ Sentiment: Hold Disclosure: Held
