After rereading the annual report I find the way the $4.9m receivable from PMC is presented to be confusing. The report says in several places (p6 and 39) that the $4.9m is capitalised in the accounts of MFA (not MFL). MFA is 50% owned by MFL so only 50% of the receivable should end up as equity of MFL. MFA is a subsidiary and it is fair enough to show the full $4.9m as a MFL receivable but down in the equity there should be an offset showing the $2.45m belongs to outside equity interests.
I will ring the company tomorrow and try to clarify how much (if any)of the $4.9m will flow into the accounts of MFL.
MFC Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
