Ann: June 2016 Quarterly Activities Report-TGS.AX, page-14

Good post MS. You picked up something, that no one has mentioned here before, namely that the draw down on finance occurred in July, so not accounted for in cash at bank calcs.

Still find it difficult to reconcile the cash at bank, so if anyone can assist I'd be grateful:

Production
* Copper cathode Stockpile March qtr - 1,465t
* Sold June Qtr - 6,052t
* Production June Qtr - 5,541t
* Drawdown of stockpile during the qtr - 511t (6,052t-5,541t)
* Copper cathode Stockpile June qtr - 954t (1,465t-511t=954t)

Revenue:
6,052t sold @ $4,792/t = $29,001,184
I am assuming that costs are applied to and tax is paid on the amount sold notwithstanding the Trade receiveable figure: Trade receivables are amounts billed by a business to its customers when it delivers goods or services to them in the ordinary course of business <$2,300,000>

Costs:
AISC: 6,052t @ $1.57/lb x 2,200lb/t = <$20,903,608>

NPAT calc:
Gross Profit: $29,001,184 - $20,903,608 = $8,097,576
NPAT - Less Company tax (30%) = $29,001,184 x 70% = $5,668,303

Stats:
* Cash at Bank as at March Qtr - $13,100,000
* NPAT June qtr (my calc) - $5,668,303
* Trade increase in trade receiveables June qtr - <$2,300,000>
* Capex debottlencking - <$4,200,000>
* Sustaining capital (Part) - Total was $1,100,000 Note: as per guidance (guidance announcement 17/3/16): "Additional capital costs of US$3.5 million are expected for related owner’s expenses and electrical tie-ins, and US$1.7 million for capitalised costs for the restart of mining. These costs are in addition to, and do not form part of AISC." In the June Qtr it notes mining costs at <$400,000>
* VAT tax attributable to the qtr (not yet refunded as DRC office of state revenue froze VAT refunds) - <$2,000,000>.
* Debt Servicing costs <$3,900,000>

Reconcile Cash at Bank
Therefore:
Cash at Bank as at March Qtr - $13,100,000
Add: NPAT June qtr (my calc) - $5,668,303
Less: Increase in trade receiveables - <$2,300,000>
Less: Capex debottlencking - <$4,200,000>
Less: Sustaining capital attributable to restart of mining: <$400,000>
Less: VAT tax paid (not refunded): <$2,000,000>
Less: Debt Servicing costs <$3,900,000>
My cash at bank calc: $5,968,303 (this calculation assumes the company paid full 30% tax, and does not consider offset for depreciation)
This compares to Cash at Bank per the June Qtr report $6,700,000

Assuming my reconciliation is correct, the following deductions from the reconciliation are either refundable from the govt, clients, or applied to the finance facility: Trade receiveable value of $2,300,000 (to be paid by clients); Govt VAT $2,000,000 (to be refunded by govt); Capex of $4,200,000 ( to be applied to the finance and drawn down) which totals $8,500,000. Add this to cash at bank June qtr of $6,700,000 and it takes cash theoretically back up to $15.2million. This compares to cash at bank of $13.1 Million at March qtr.

If I am proved correct, the only comment I would make is could tgs provide a bit more of a reconciliation for mere mortals such as myself to prove that the operation is performing better than the June qtr report looks at face value....


Please do not go off the above, be very careful when investing, get your own independent legal advice, the above are musings of a uneducated mute......

gltah