Accounts don't lie

Despite the negative spin concerning B4M, the cashflow report is telling. A couple of things to point out.

1) In the June quarter, 409000 lbs uranium was produced, with a value of about $20 million at teh budgeted selling price. That's a future $5 million to AGS. This compares to production costs for the quarter of $237K (yes, that's a K). I assume that they're being billled for their share in arrears, still, at some point the cash from sold uranium will appear on the accounts a receipt.

2) Currently producing at about 290000 lbs/month. Next quarter should give about 870000 lbs uranium with a value of $43 million (almost $11 million is AGSs share). The budget for production next quarter is $6.5 million.

3) Given that the administration for next quarter is predicted to be $5.5 million compared to the current $900k, it's obvious that that represents the settlement outcome. But that is, of course, a once off.

4) Despite some lower estimates I've heard, there's still $17.5 million in the kitty.

Over the next quarter, cash could drop to possibly $5 million, but then sales are expected from August, and there'll be a big pile of the yellow stuff ready to go by then.

So it looks like there should be an operating profit for AGS of about $4.5 million per quarter, down to about $3.6 million after admin costs.

I hope we don't see any more headlines that say things about Australias newest uranium mine losing money.

I've changed my sentiment back to "Buy".