Hi Nui thanks for the comments, great stuff. I've been trying to...

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Yeoda

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20/07/16

01:05

Post #: 18312284
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Originally posted by niu ↑

Haven't run a Li plant but processes are my thing...

The VAT reimbursements are an issue arising from construction. Normal working on VAT is that you collect VAT on your sales and pay it to the taxman. You then get reimbursement for the VAT paid on your inputs.It is a reasonable assumption that you will recover the VAT paid. The catch is - no sales, no value added, no reimbursement. And so, they set out and spent 200m USD building a plant, paying VAT on every contract and every import, and then they spent a considerable amount of money during ramp up. All the time, the VAT receivable was building up but because there were no positive cash flows there was no possibility to recover VAT until now.

At last years annual report the VAT recoverable was a nominal 40m USD but because it is recorded in ARS rather than USD it was fair valued in the accounts at 35.5m AUD (27.3m USD) - devaluation shows that to have been a prudent discount but it has probably devalued further since then. On the other hand, the ramp up beyond balance date probably added to the sum. Whatever way you look at it there will be a lot of cash flowing back from the Argentina tax department over the next year or two.

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Hi Nui thanks for the comments, great stuff.

I've been trying to find a good learning resource to get my head around the brine process but can't really find much. Do u have any links to some good learning resources on the type of brine proces ORE are using? A process flow diagram would be handy.
Cheers.

ORE Price at posting: $4.85 Sentiment: Buy Disclosure: Held
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Hi Nui thanks for the comments, great stuff. I've been trying to...

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