NCZ's cash flows from selling zinc aren't called revenue yet because the Century Zinc Mine is still in development phase. These cash flows are offset from the capitalised development costs in the balance sheet. You need to read the notes to find these, but per the 30 June 2019 report at https://www.asx.com.au/asxpdf/20191010/pdf/449cw33pwy30xd.pdf : - The cash flow statement on page 27 (per page number at the bottom) of the financial report shows "Receipts during development phase classified as investing activity of $146,918,916. - The Capital Works in Progress column of note 11. Property, Plant and Equipment on page 47 shows $115,214,827 of proceeds from sale in development phase. This is offset from the $287,850,000 of development expenditure during 2019. - Trade and other payables note 13 of page 48 has $31,704,089 of deferred proceeds. This usually represents sales where they are paid before shipment.
$31,704,089 + $115,214,827 = $146,918,916.
This is all in accordance with accounting standards and their judgement headed "Status of asset commissioning" in note 2 on page 40 of the financial report. What NCZ have done here is perfectly legal and in accordance with accounting standards. This must be good because, as we all know, accounting standards are always sensible and never result in incomprehensible financial reports with important details buried in the notes.
NCZ Price at posting:
35.0¢ Sentiment: Buy Disclosure: Held
