half yearly profit guidance

So i posted a 'breakdown of quarterly' post last week, where i gave my interpretation of how the half yearly report might look. I estimated that we might see profit in the range of about $2.4m, the company has responded with guidance of a half yearly profit of $6.4m


My rough estimates last week:
"So potentially this is how the Half yearly should look:
Revenue $49m
Cost of sales $38m
Gross profit of $11m
less other expenses, net interest and depreciation (using half of last years figures for these items (as only 6months) = $8.6m
Net profit for 6months* = $2.4m"

The unaudited guidance was released by FML earlier today which looked very similar:
Revenue = $49m
Cost of sales $34m*
Gross Profit = $14.6m
dep & amor = $8.3m
Net profit = $6.4m

*the $4m discrepancy from my ESTIMATED figures for costs of sales was the only difference, that resulted in a NET PROFIT difference of $4m in the end.

Why? As discussed in the previous thread, there was bullion on hand that was not sold in the quarter, my reasoning is that the "cost of goods sold" for that unsold bullion was included in the quarterly CASH FLOW statement (as production costs), but was not recorded in the half yearly because there is no costs associated to unsold bullion (no cost of GOOD SOLD as it wasn't sold)
This is a basic accounting principle (MATCHING PRINCIPLE) where expenses need to be matched with the relevant income produced, in the relevant period it was earned.

As my assumptions did not take into account the bullion on hand (unsold) the costs of sales were overstated.

Now a quick break down of today's announcement:

Other than an increase in production of 66% and an increase in revenue of 112%, we saw Gross and Net profit increse by 51% and 28% respectively. Another increase came in the form of Depreciation and Amortization.

Once again i must stress, depreciation and amortization costs are NOT cash outflows (technically we are spending money in development costs, though this is adding to our assets and allowing us 1. to produce more gold in the future and 2. Deprecate those costs over a number of years, giving a tax break).

The company made $14m in the second half of the year which was used to reinvest into the company (there is significant cash flow being made and re-invested into the company through development and exploration).

Today:
"Focus is now a significant mid-tier gold producer with robust cashflow, a 2.2 million ounce Resource
Inventory, the 1.2 million tonne per annum gold plant and immense exploration upside"

Next steps:
"The Company is now ideally positioned for the next stage of growth, which will see a significant
increase in production with the high-grade mine at The Mount commencing production of Ore in March
as well as a series of new open pits at the Tindals Mining Centre commencing production starting in
April"

We have 1 mine commencing production in March.
A few open pits starting production in April.

This combined with the approval to drill Treasure Island (also commencing March) means that FML is well on the way to taking the next few steps.

Some asked questions after the quarterly, about where this company is going, well today they responded. They reassured us that they're STILL on track to deliver.