I'm not going to bail just yet. They only got their act together with regards to production about the middle of last quarter. They would have been cashflow positive in December. I'd wait for more background info before deciding on whether to stay in or not. In particular I want to understand why the working capital is so high - if this is a consistent $ per tonne of coal then I'm out as part of the attraction is the potential leverage of this business to prodcution - essentially wages are a fixed cost and any increases in production should almost go to the bottom line assuming theyre not spending a fortune on other operating costs - rock bolts, FoG, power etc. Can anyone give me a better insight into the high working capital?
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