calm, page-4

I've made this point a few times before but here goes again:

The cashflow report is pretty useless to ourselves. We should not read too much into it (positive or negative). All it tells us is how the company is managing the cash of the company and not anything about the strategy behind the management of this cash and the reasons for the cashburn rate.

Yes we can give possibilities as I have tried to do but they are never watertight.

For example have a look at the half yearly report and the December quarterly together.

30 June 09 31 Dec 09

Creditors - 6,242k 8,026k
Debtors - 2,834k 2,934k

If TZ had maintained the Creditors balance at 6,242k and Debtors balance at 2,834k from June to December then the cashburn over that period would have increased by 1,684k.

Either this was highly effective cash management or TZ couldn't afford to pay those bills. Looking at the cash balance at the end of December, we know that it was the latter.

*Note - Over that period TZ incurred a lot of legal costs, which have since been converted to equity*

These guys know exactly what they are doing with managing the cash of the company. However we still need to be shown evidence of this by the way of a reduced creditors balance and a debtors balance which has increased. TZ would collect the payments from debtors in line with their cashflow forecast.

SHOW! ME! THE! MONEY!