Tran
U've missed a keypoint. $56mil is their OCF. What u are referring to as $44mil is the gross margin. It's slightly complicated, but the upcoming HY in Feb will clear this up for u. In the meantime u can flick thro' their previous HY reports.
BTW $56mil is the most they have as CF made when u compare results from the last 2 first Half yearly reports, albiet through higher shipment (eg: 1H15 6.9MT sold, Rev AUD450.8m).
A starting point for you should be their Dec15 (HY) & June16 (FY) ASX updates. The company will show their financial results from this time & show the turn around made with their finances.
By the time they get to June for the Full Yearly report, in my view they should be in positive territory with their cashflows. CF for 12 months ending June 2015 was A$ -67 mil, for June 2016 was slightly better at A$31.1 mil & June 2017 should b an improvement on 31.1 mil u'd think with the recovery of the POI.
In a nutshell, just FYI :
a) Rev - Costs is their Cash Margin.
b) Take away some more costs & u get their EBITDA.
c) Deduct working capital, restruc costs, interest etc etc &
d) then u get the Net OCF (ie: A$56mil for Dec qtr).
Their upcoming HY should show the full picture, i.e
- total shipment (8.1 MT),
- Revenue,
- avg PIO, avg costs,
- gross Cash margin,
- Ebitda &
- NOCF
FWIW's for comparison sake, their numbers from previous 1HY are listed below. U can chk this from the ASX release as well.
1) Rev, EBITDA, Cash Flow for 1H2014 was A$450.8mil, -A$14.8mil, A$3.95mil from 6.9 MT sales
2) For 1H2016 these figures were 372mil, 20.5mil & 14.1mil from 6.9 MT
For 1H2017: shipped ore is 8.1 MT (4.1 for Sept qtr, 4 MT for Dec) & the rest will b announced in late Feb.
Hope this helps. If not, just grab any 'Fundamentals of Corporate Finance' from a nearby Dymocks or Co-op Bookshop & work yr way thro' the company updates on the ASX.
Cheers.
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