AGO earning 260m pa profit, page-14

ern D&A is not a cash cost but does reduce profit. As such, cashflow will be positive if profit negative.

Using your numbers, cost is $73+$15 = $88. Once you translate the revenue price of about $80 to AUD it equates to about $92 and is slightly profitable before interest. The CAPEX is a blance sheet item and has no effect on profit - D&A have already been accounted for above.

Having said that, interest on their loan also needs to be serviced which will then probably put them in a loss position for accounting/tax purposes at the moment.

The reason why it is a buy is because of the IO turn around story (15% uplift by year end is what economist are forecasting -grain of salt - we know these things overshoot on the up and down side) which will put it back in the black and as you correctly pointed out, take over prospect and port access.

Highly risky short term trade though but should be rewarded in the medium term.

DYOR