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01/10/21
21:29
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Originally posted by mrposhman:
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I hadn't seen this before my posting on the other thread (been a busy day at work). TBH this announcement is complete BS. IMO the reason why they have delayed filing their accounts is nothing to do with Covid (and I'll go into that later) and more to do with financing. With the amount of unknowns around the incoming financiers, my understanding (and I work in finance in an industry that isn't mining) is that auditors would be unwilling with the level of debt and the negative CA balance to sign off the accounts as a Going Concern. There is no way that TER would have wanted that to be released, it would have created a lot of noise and unsettled a lot of holders and potentially the new lenders even further. This is consistent with the recent announcement of the recent funding agreement with the current lenders (I'll bet that this is stated in the accounts when they are released, they wouldn't need to be if they were signing them off as a Going Concern and it was all related to Covid). Onto the Covid bit. This is their statements: A number of events brought about by COVID since lodgement of the Preliminary Report have impacted the completion of the audit process, particularly in South Africa where COVID impacts remain severe and unpredictable: I. Executive Chairman (Mr Craig Ransley) contracted COVID and was away from work for considerable time; - II. Chief Financial Officer (Ms Celeste van Tonder) contracted COVID and was away from work for considerable time and in self-isolation for 14 days; III. in addition to Celeste, a number of our other South African head office management contracted COVID, meaning they were unable to work for varying periods and in self-isolation for 14 days; IV. the Finance and Commercial Manager at one of our major operations in South Africa contracted COVID and tragically passed away. As well as requiring new personnel to fill his role this resulted in self-isolation for 14 days of a number of personnel from this mine site and our South African head office; V. Managing Director (Mr Daniel McCarthy) was en route back to Australia from South Africa over part of the period. International travel disruptions and quarantine rules meant it took Mr McCarthy 28 days to return home. Whilst the above are reasons (particularly if they were partically sick from Covid, and point 4 is tragic that anyone in our staff has died), do they not have the ability to use Zoom like everyone else? The only communication we have had with our auditors at work (including completing the audit earlier this year) has been remote. Everyone else has to complete their audits and release audited results on a remote basis, so why do they think self isolation means they cannot work and communicate over Zoom or something similar?
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the fin statements were complete a month ago, the only issue raised by the auditors was the financing of the bonds. there is no other accounting or auditing work to be done. simply they can’t meet their debts when due currently. Once they sign the new finance agreements, the auditors would sign off. saying finance is secure is different to having signed agreements. They need signed agreements. I’d say this issue will make TER sign up with the existing bond holders as they need it NOW and can’t keep waiting for ‘new’ incoming financiers. I said it before, poor management as they’ve had 12 months to resolve these bonds.