Ann: Full Year Statutory Accounts, page-12

2015 CF from operations was +$0.9m, less capex of -$4.845m = neg FCF of $4m (see my above post).

Don't include the asset sale as this has nothing to do with running the business and they can't keep doing that.

Also, 2015 cash balance = $5.2m, 2014 cash balance = $8.55m, so cash has decreased by over $3m during the period and that includes them selling $3.4m of assets.  Out of the $5.2m of cash in 2015 $2.8m is restricted cash.  

I understand what you're saying on their latest presentation, but I just simply don't trust them.  You go back and look at all their presentations, they virtually always say that their cash cost is well below the sale price, which means they should be making money, but virtually every period they are losing money.

The most recent thing I have seen them release in terms of all in cash costs and which will have had to be audited is what was in the 2014 Annual Report.  Below gives further detail.  Can you explain to me their older presentations where they told us cash costs on Escarpment were significantly less than $175, then they write off all of the assets assuming $175 (I know they are looking at an NPV therefore $175 will take into account some upfront capex, but this still does not add up).  Like a lot of mining companies, they are not talking about all in cash costs.  

2014 Annual Report

• Asset impairments are not taken lightly by any board, so clearly writing down 90% of their non-current assets shows just how dire things are
• In that write down:
  • There was a 50% impairment to freehold land - how does this possibly occur??? Paid way too much?? I thought NZ was in a property bull market??
  • 100% of work in progress was written off - $11m - how can they spend $11m on work in progress then decide it is worthless???
• But worst of all, is the 100% impairment of Buller Coal. This clearly illustrates that Hamish and Board have been very wrong in what they have previously told all the investors, particularly in terms of cash costs. The below is from the Annual Report:

• • So basically Buller Coal is worth zero with coal at US$170+. What does that imply for the all in cash cost, particularly given the capex is meant to be very low and there should already be quite a few sunk costs which shouldn't impact the current NPV