HapI suggest you think again about what happens when you build...

Hap
I suggest you think again about what happens when you build up inventories and they then stabilise. While building up inventories they reduce cash flow. In the cash flow statement costs and revenue are recorded in the quarter they occur. When you mine the material it is recorded in the quarter it took place. The revenue is not recorded until it is sold and the revenue received which may be after the end of the quarter. Thus when inventories are building up cash flow is reduced. When inventories stabilise cash flow is no longer reduced due to changes in inventory. They do not need to reduce production. They can increase production but hold inventories stable.
From the last quarterly:
"Stockpiles represent a significant
investment into the Company’s
inventory, necessary for completing
larger and more frequent shipments.
Stockpiles are now reaching the required
level to maintain steady-state production
rates of 625ktpa, which is anticipated
upon conclusion of the Stage 1.5
Expansion."

On payables Note 18 says These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year and
which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The amounts
are unsecured and are usually paid within 30 days of recognition."

You are saying that all the rise is due to operating expenses and none to goods that can be paid with finance facilities. I note the cash flow statement says that $6.5 million was spent on plant, equipment and mine during the year. Given they are spend $15 million on the Stage 1.5 expansion clearly there will have been things that have been received and there will be more ordered and delivered in the current half year that can use the finance facility . This also shows in the balance sheet under non-current assets as a rise of $7.6 million. I am puzzled therefore why you say there has not been a corresponding increase in assets. The value of assets on the books did rise. I was not suggesting all the increase in payables was due to assets, only not to assume as you do that all the increase in payables relates to operating expenses.

I am happy to leave our discussion there as I am on holiday. I hope things turn out better than you fear. We shall see very shortly if you are right.