Ann: Quarterly Activities/Appendix 5B Cash Flow Report, page-12

This is indeed an interesting one.

Just looking at the Quarterly one can deduce the following:

• Sales receipts in 6 mths to 31 Dec = $32m
• Inventory on hand as at 31 Dec was 17k tons which some were sold in January, i estimate 17k ton could yield roughly $13m?
• Cost of production to get the $32m sales + $13m inventory of $45m was a whopping $68m to 31 Dec. Add another $5m of cost accrued but delayed payment to suppliers so these costs stays off the 31 Dec cashflow report, you would have a monstrous cost of production of $73m to yield a revenue of just $45m , a nearly $30m production loss.
• Admin and corporate costs running at over $3m a quarter so $6m+ for the 6mths
• Cash on hand at 31 Dec would have been only $2m if they didn't borrow another $10m in debt

Can anyone see how they can close the half yearly production cash loss gap of about $30mil by end of March where the lenders will decide this company's fate..

Unfortunate for holders but this is likely another producer to bite the dust soon imho