quarterly report to march due next week, page-14

Mr stix, There is a difference between accumulated losses and actual cash flow. The accumulated losses by the end of this year might be $200m. and yet the cash flow will be positive, unless they borrow from the bank or elsewhere to complete the project. In any business, you can deduct the acc, losses before you start paying tax. You don't have to soak up those losses before you pay a dividend. If the cash flow is there, and all other debt are paid, you can distribute a dividend. Acc. losses are not debts the company has to repay. it is simply the cost they have incurred to get to the mining stage. In other words, if the company makes a mining profit, they don't have to pay tax on the acc. losses. The acc. losses can be deducted from the taxable income. So payment for the very first shipment can be used for dividend. Minus expenses of course to run the company.