This Qtrly demonstrates again incompetence within the Company.
I haven't seen one Qtrly where its projections are even close. eg.
June Qtrly Financial Projections for Sept Qtr.
Receipts $1.54 million
Outgoings $1.54 million
Sep Qrt Actuals
Receipts $1.70 million
Outgoings $2.03 million
Negative cash flow $0.33 million
Projections for Dec Qrt.
Dished up its last projections again.
IMO the next quarter is likely to see a further $500,000 cash drain.
The Sep Qrtly states NMP Sales (Q4) - I think it should be (Q1).
June Qtr sales were 1,300 tonne less than production.
Sep Qtr sales were lower with greater production.
Back of the envelope calculation suggest that the company has stockpiled 2,800 tonne of NMP in the last 2qtrs. If it can't be sold it has to be dumped at a cost of around $500 per tonne. The Company has created a further potential $1,400,000 liability in the past 6 months and it will probably continue to grow.
IMO there is no way the Company will have a cash positive position following the closure and clean up of it Moolap operation. The cost of redundancies, rehabilitation of a contaminated site etc have been vastly under estimated by the Company.
Frank's folly continues under current guidance.
MHM Price at posting:
1.6¢ Sentiment: None Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)