Sorry but next quarterly is not going to look great.And past...

Sorry but next quarterly is not going to look great.

And past experience suggests the BOD may enlighten us on some other challenges/news that they've been starting at the ceiling and whistling, waiting for the quarterly to disclose (though the big fish know who to contact at the company to get this information in advance).


Think about it - they're producing substantially more than they are selling, which means production cost (i.e. outgoings) are being carried by smaller incomings.

This is ironically the other side of the coin to the situation we had in 2H 2018 when our cash costs blew out due to low production quantity and sales.
Now we have high production (so one could say our production cost is low) but we also have low sales, which means our cash balance is taking a huge beating (we're taking onboard cost of production, but not receiving anything for this effort per the quarterly statements).

Anyone who thinks they will see a cash balance ~ AUD $300m in the next quarterly has rocks in their head. The actual figure will likely be closer to $200m than $300m AUD (I reckon around the $220-$230m mark). Reasons being investments and ongoings for Mt.Cattlin, Sal de Vida, James Bay, LPD investment, A40 investment, all coming out of a low spod price, low margin Mt.Cattlin for which we haven't even sold a third of production from this quarter.