You can't really blame them for both an increase in inventories AND the increase in payables / current liabilities and say it's not actual value created by the company. That would be selective accounting, they bought ore cheap and had to write its value up, well, because the value of that ore increased and they used payable and liabilities to achieve that. You get it one way, either you count the increase in payables and count the ore write up, or you don't count either. Not sure why you would count out the 12m$ impairment out of the operating profit either, this is a result of the depreciation of assets already bought, this doesn't affect cash balance at all. They could have put 5$ or 30m$ and this wouldn't have affected cashflow outside of taxes no ?
I'm not an expert in accounting but the proof is in the pudding, they have substantially reduced their debt, substantially increased their asset backing, and done a 180m$au acquisition in the last 3 years. Surely this can't be the result of accounting footwork.
OMH Price at posting:
37.5¢ Sentiment: Buy Disclosure: Held
