Ann: Quarterly Activities/Appendix 5B Cash Flow Report, page-11

Really getting hurt by the rail/port backlogs. There's actually some good numbers in here but ultimately unless they can get the topline revenues up considerably they're just nowhere close enough to be able to breakeven let alone service the debt which is now payable again as of this quarter. The capex spend dropped from $31.0M in the March quarter to just $1.2M in the June quarter which saved their bacon but you have to wonder what the mid-term implications of this are? It sounds like they're saying that the logistics issues are rolling into the September quarter (second sentence under 'short-term liquidity' on p6) so something has to happen here with just $21M left. Not sure the market will cop another equity raise, but what else can they do? I wonder whether the debt partners will countenance yet another deferral. The payment they owe (US$6M) in the current quarter represents over 40% of their current cash balance.