This is where you are not correct,those positive cashflows to...

This is where you are not correct,

those positive cashflows to which you refer are hundreds of millions from MIS sales, a lump sum that flowed in May to September (when cash or 12 month interest free investments were made and a few more months to sell the remainder to Adelaide Bank etc).

But $150m+ of sales was funded on balance sheet i.e. no cash from that sale (and half of that got written off as bad - $30m in one group of clients)


The remaining cash went to commissions, fees, cap ex (ports, chip mills, land even olive processing facility).

ever since 2004 the company was reliant on sales sure but equity raising at $4.65 per share, trees 1 -3 $200m and debt anz $250m and club bank $400m.

I said before dont get me started on cattle, but that $150m in MIS sales after fees was cashflow negative - property purchases for $30, $40 and $50m EACH meant this was a terrible strategic decision for a company that was already cashflow negative.

Why do you think a company could announce a $100m taxable profit but then need to raise debt cause it had not cash?

the answer of course is the accounting was crap - much of the profits were recognised in the year the money was raised but it came with a 7 year (cattle) 10 year (trees) and 20 year (horticulture) to manage the operations.

Again, not a ponzi but a model that was outdated years ago