AFR having a Fnp field day, page-15

page 62 of latest Annual report outlines the extent of the misdirection all around - not only internal management, but independent director who was corporate finance partner KPMG 12 years, the auditors, and on and on...

But you'd have to say if we look at just the cash (which is hard to fudge, although they managed to do that in 2019) of the six years prior, the scale of capital raised, and being spent , hadn't gained any operating operating cash flow traction. You can do it with online business, but not real world plant, buildings and equipment.

		FY2014	FY2015	FY2016	FY2017	FY2018	FY2019	Accum
1	Operating cash	6,899	6,037	6,642	5,381	24,376	892	50,227
2	Capex	21,761	51,605	18,977	213,030	72,978	206,418	584,769
3	Capital raised	32,198	1,264	66,800	76,991	200,285	130,532	508,070

The articles are tracking back the money trail - its obvious that much was financed, not capital and that whatever banks were doing the lending were both persuaded by the blue sky message and having so much cheap funds that they have let their guard down. So for this reason, we investors, speculators, are in an environment where there is more endemic risk and that mere provision of bank finance no longer can be relied upon being a [latent] guide that strong risk assessment has taken place by banks.

It had me fooled to have it on watchlist