Guys, if we look at Page 28 of the annual report (cash flow statement), effects of exchange rate on cash and cash equivalent : -3.396 million.
What does it mean: when MAD raised $50 million equity in Australia, exchange rate is roughly equaly to 1:1 between AUD and USD. According to the note, more than 30 million was saved in Australian Bank as AUD rather than exchanging them into USD directly.
In the last Quarter (June Qrt), USD appreciated against AUD and the value of these 30+ million drop by more than 10% which leads to the -3.396 million.
That bascially means the really cash outflow in Q4 is not 17.9 million. It is 17.9-3.4=14.5 million which makes more sense to me.
Anyway, part of the exchange rate loss will be offsetted by gains in its future contract ($2.7 million derivative financial instrument figure in Balance Sheet in Page 26 of the annual report).
That also tell us one thing: the average BODP in Q4 is 1286 and June daily production is 1374. Since the 7.1 million received in Q4 is only accountable for sales from March to May: so the 7.1 million = (1286*3-1374+ March 1062)/3= 1182 average BOPD from March to May. Let's assume that for this FY, averge oil price go up 10% compared with June Qrt, that pushes the June Qrt sales figure to 7.8 million. When production reached 2000 BOPD, sales= 7.8/1182*2000=13.2 million. I will say the company will reach cash flow neutual at 2000-2200 BOPD range. Cheers.Bookmark and Share
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