Hi All I'm busy printing out the financials so that I can go...

Hi All

I'm busy printing out the financials so that I can go through it with a ''fine tooth comb''.

At first blush, they have made money (on paper).

There, are however, some glaring entries that require further investigation, such as the ''inventories'', these have the effect of pumping up the balance sheet by around $50 mil and also simultaneously keeping this amount off the expense section of the P & L.

I don't mind them booking expenses as an asset in the creation of stockpiles, as long as they're not stock piling waste and low grade ore.

On the bright side, mill throughput should not be a problem in the wet, given their massive stockpiles of unexpensed ore.

I'm also disappointed to see that payables have increased and not been reduced. I was really hoping to see balance sheet strengthening as a result of business cashflows and not financing/equity cash flows.

This will require further investigation, these are just my very preliminary thoughts.

Cheers
Ivan