the capital raising bet, page-25

Ok without the baits...

CW,I've read your analysis on the AFR and I disagree with it. Your argument is based on the inventories. Yes the inventories are based AT COST and how could it be any other way? You can't price the inventories at "gold content" before the cost of milling can we?

The argument is flawed imo. Lets look at it another way and I hope I can explain myself clearly.

As it stands currently:

Current assets:
Cash - $2.604m
Inventories - $25.559m
All other - $8.88m
Total Current assets - $37.023m

Lets pretend the ore wasn't mined and the costs can go back into the cash account.

Current assets:
Cash - $28.163
Inventories - $0m
All other - $8.83m
Total Current Assets - $37.023m

The end result is the same and as it stands, there is still a $34m deficiency in current assets.

Another issue I have is that the same problem was apparent at the last half yearly. Remember every Laverton campaign is at the start of each quarter.

This half yearly had the benefit of stockpiles containing 353,800t @ 1.84g/t from last Decembers quarter or the half yearly before this one. Next half yearly will contain, 400,000t comprising of 220,000t @ 1.63g/t and 180,478t @ 1.08g/t from the last quarter. This is ongoing!

There are only 2 campaigns per half yearly. You can't add 2 1/2 or 3 campaign revenue to each half yearly can we!

The same problem arises each quarterly. We have the argument about "Bullion on hand". Some want to count the bullion as cash and that's fine. However that bullion will turn up as revenue the next quarter and I call that "double dipping". The same happens in the half yearly/yearly accounts.