EBITDA figures are only so useful as they don't tell you how much they've spent on sustaining and other capital costs including exploration. Due to low copper prices and underperformance at Tritton, they are still not generating enough cashflow to properly finance the business. The amounts owed for trade payables and accruals of $85mil is still way too high for this business and now they're up against it with increasing levels of rehab bonding required - it seems ANZ won't be renewing their facility in August probably due to the underperformance of the business and that $50mil facility probably needs to be replaced by a $75mil facility - Argo Surety and MacqB with requirements for a lot of copper hedging will probably come riding in to the rescue earning lots of fees and giving AIS lots of unprofitable hedging to deal with knowing there are few alternatives for them. You can't lose $140mil in FY23 without there being consequences and unfortunately that loss has not been properly financed to date.
AIS Price at posting:
11.5¢ Sentiment: None Disclosure: Held
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