Going concern As at 30 June 2019 the group incurred a loss of $26,471,457 (2018: profit $11,338,312) after income tax expense, had net cash outflows from operating activities of $7,547,434 (2018: $1,402,181) and working capital deficiency of $16,179,704 (2018: surplus $6,600,215). The group's loss includes the derecognition of the Research and Development Tax Incentive receivable of $5,160,515, the provision for the refund of incentives received in prior financial periods in the sum of $8,185,725, and a provision for a potential general interest charge of $2,571,373 on the refund, pending the outcome of the groups appeal to the Administrative Appeals Tribunal. The group's loss excluding the aforementioned expenses was $10,553,844 and was largely attributable to the group recommencing active operations at its Granite Belt Project resulting in a significant increase in mining operating expenditure and employee benefits expense. The ability of the group to continue as a going concern is principally dependent upon the following conditions: ● ● ● Raising additional capital or securing other forms of financing, as and when necessary to meet the levels of expenditure required for the group to continue to progress the mineral properties in which it has an interest and to meet the group's working capital requirements; Positive cash flows from the group's Granite Belt Project; and A favourable outcome in the company’s appeal regarding the Tax Incentive benefit decision of the Administrative Appeals Tribunal. These conditions give rise to a material uncertainty, which may cast significant doubt over the consolidated entity's ability to continue as a going concern.
The company is running out of cash fast and going concern is a potential issue.
MRV Price at posting:
0.4¢ Sentiment: None Disclosure: Not Held
