ASX co's abide by accrual accounting principles and generally...

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Dabble010

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21/08/23

11:14

Post #: 69451961
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Originally posted by yurts: ↑

Smoke and mirrors...

"Total gold bullion sales for the quarter were 3,730oz of Au at an average price of A$2,947/oz" = A$11.0M in gold bullion during the quarter, of which $1.1M was produced during the March quarter

"and final payments for gold in concentrate sales revenue of $11.3M" revenue from work completed in 2022.

Yes, total revenue = $11.0M + $11.3M = $22.3M, but the bulk of that revenue (concentrates) was generated from costs incurred in 2022.

Total costs for the quarter were $18.352M. When you exclude the revenue from concentrate sales, as an operation Wiluna lost $7.35M during the quarter.

Put another way, AISC looks to be A$5,486/oz, being $18,352,000 / 3,345oz (total gold produced)

What does this quarter look like? Considering there will be no more sugar hits from concentrate sales, declining head grades and high AISC I expect the $15.4M cash in hand to be whittled down at a rapid rate.

All IMO of course, DYOR.

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ASX co's abide by accrual accounting principles and generally you take the cost to the P&L when the revenue is recognised.

The concentrate would have been sitting In the balance sheet as inventory until the sale occurs and then recognised as cogs along with the sales.

Basic accrual accounting!

thats my understanding but happy to be corrected.

Last edited by Dabble010: 21/08/23

WMC Price at posting: 20.5¢ Sentiment: None Disclosure: Held
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