re: Ann: Half Year Profit Guidance - $12.6m b...
I am a holder so I don't want to pour cold water on the sentiment but am I the only one who is disappointed and a little surprised by this announcement?
If you look at the last two quartelies the reported gross profit after all mining costs (including depreciation and capital costs) is $31.5m. To get down to the net profit of $12.6m then they must have incurred admin, finance and "other" costs of $19m. That is way above the run rate of the last annual report even given the fact that we owe lehmans $98m.
Admin costs should be no more than $4m and net interest no more than $5m so where is the other $10m of costs coming from?
I note that they say they have no more costs to write-off related to Lehman's so I am just wondering what these "other" costs are. I guess I will just have to wait for the full interim report unless anyone else can enlighten me.
NGF Price at posting:
19.0¢ Sentiment: LT Buy Disclosure: Held
