All valid points. The point I was trying to make is that you can’t keep liquidating inventory as they did, it’s not sustainable, so they got a kick from that which they won’t always get.
With regards to cash - it dropped from $33.1m to $17.8m. If you look at the waterfall chart toward the back you can see renison generated $10m cash (consistent with wording), nifty burned $16m (consistent with -$4k/t margin and 4kt sales) and really the only way “cash and working capital” remained flat was the big green bar “change in working capital”. Now I could have a guess and say the driver is the dollar cost of inventory has increased per tonne (was written down to net realisable value at 31Dec and since then Cu and Sn prices have climbed) but without further information I couldn’t tell you how it remained flat but it’s clear cash has been burnt.
If they can go a quarter showing they are cash positive or at worst neutral they may be able to get a working capital facility from a bank and raise sufficient funds to complete the nifty restore. Let’s see - at the moment they are at the mercy of Sn and Cu prices which have been favourable of late but banks may not be willing to lend given the vulnerability and thus a CR is a possibility imo (though it has reduced significantly given renisons performance).
MLX Price at posting:
28.5¢ Sentiment: None Disclosure: Not Held
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