I tend to agree. The biggest issue is the tax liability still to...

I tend to agree. The biggest issue is the tax liability still to be paid. I like to drilldown in more detail and have created a spreadsheet with details by trying to see what the net cash from current operations are. I think the ($3.9m) loss is a bit misleading as it takes into account 2 things that are unrelated to the period in question. Higher tax payments and also the prepayment that is referenced in note 5.



So I've split out the balance sheet current account deficit, and grouped into a few items, which I hope are self explanatory.


The working capital deficit isn't related to current trading but as you say (and I know you have been critical of TER in the past on the aggressive nature of their dividend payments most probably for this exact reason) they have paid out dividends despite tax obligations coming up, They either thought that the incredibly elevated coal price was going to continue or were complacent.

I've also split out the cashflow movements below, this shows that their current trading / SIB capex would result in cash generated of $12m but because of the aged nature of paying out dividends (prior period and prior period tax payments) and the prepayment for port and rail capacity, cashflow was negative.



I think this shows that the underlying business is still cash generative, which is obviously good, however doesn't address how they will pay the aged tax debt of $48m still sat on the balance sheet.

It would appear either an asset sale or potentially some sort of financing will need to be undertaken to get rid of the loan. Someone (probably the finance director - Megan) needs to fall on their sword here. They have paid dividends out which needs to either lead to a distressed asset sale or refinancing to clear old tax debts. Thats simply not good enough for someone on $0.5m base salary and $1.5m with all LT and ST incentives paid out.