Breakout Gap Running, page-31

That is clearly wrong. Last quarter is very clear. They started with A$5.3m in cash + gold inventories (see annual report) and finished the quarter with A$14.6m (see latest quarterly). A$14.6m-A$5.3m = A$9.3m cashflow. That includes all costs + hedging. It does not include the Investec debt repayment (A$4.2m after quarter, 1 of 3 payments with 2 left). Probably no reduction of trade credit too (A$28.5m outstanding). If we assume A$1.5m exploration costs per quarter (=A$6m per year, currently Karouni has overall spending of A$6m in exploration), operational quarterly cashflow is still just short of $8m.

Earnings include depreciation, sunk costs from the past like acquisition costs etc., so not that interesting. Annual operational cashflow is at least A$30m, that means less than 12 months to eliminate Investec debt + excessive trade credit.