CDU (ASX) Ann: Full Year Statutory Accounts

Originally posted by shadowboxer1 ↑

Janti

You have been pretty vocal since the release of the full year accounts and I respect your opinion on financial matters but out of courtesy of your profession of thought you may have rescinded your opinion that the $48 million makes part of these full year result because it wasn't drawn upon until a full month later of the reporting period.

"The Company completed the first drawdown of its $US65m ($AUD70) banking facility with the China Minsheng Banking Corporation in July 2014. All documentation for the facility was signed before the end of the financial year but the last condition precedent for the facility being the registration of the mortgages was completed in July 2014 and the first drawdown for $US45m ($AUD48) was completed on 31 July 2014."

I may also offer my opinion that this was drawn upon to pay for the outstanding commitments for the power station of $16.3 million that's appears to me it may now be complete.

http://www.cumminspowerblog.com/en/...-power-plant-major-australian-mining-project/

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Shadow,

Page 38 of the annual report sets out what funding is needed to complete the mine project. It lists the $42.3 million that is set out in note 27 plus the $39.1 million of additional capital expenditure needed, bringing the total capital expenditure to $81.4 needed after June 30th 2014. As the mine construction is expected to be complete prior to the end of 2014, we would expect that its all spent in the 6 months from July to Dec 2014.

The available cash was $9.2 million in the bank as at the end of June plus $72 million from the US$65 million loan facility, being $81.2 million. This nicely balances what is needed in capital expenditure over the 6 months. It doesn't matter much when in that time its spent. The sooner the better because that will indicate timely progress.

In addition, the June to Dec timeframe will require cash for Administration, exploration and mining expenditure. Based on the accounts for last year, that seems to be running at about $23 million over 12 months, so this current 6 months is likely to need $12 million to cover those costs.

It always makes sense to have some contingency in there as well. 15% of roughly $100m would be $15m to cover that.

So potentially $27m will need to come from DSO sales and/or early production sales and/or some form of capital raise as suggested by the annual report notes.

To get finished by the end of 2014 it will be pretty intense in terms of work to complete to a timeframe and cash thats needed to be paid as that work gets done. Half of that 6 months is now gone and logically, potentially half the cash needed has been spent. It therefore wouldn't be a surprise if close to $50m has been spent in the 3 months just finished in my view, to match work done.