hi, just to clarify the company DID NOT have 958,M in cash as at the 30 th June...........
The company had ONLY 68M
This is why they had to go out and quickly borrow a cool 450M additional,,,,,,,,for a start the ATO had to be paid $120M
They are trying to conserve the cash burn on this puppy by slashing costs, jobs, sustaining capex, admin, exploration,parking up assets, mining stockpiles which have low cash costs ...........all about surviving......group cashflow negative below 1450AUd on their guidance which they have maintained............and their guidance is way off their own sensitivities.................
Some now say Div doesn't matter, IVe heard that all the way down.......fact remains, it cant do a buy back as it has no cash firepower, its using debt, its cashflow is weak and getting weaker only propped up by short term slashing which it is covering with additional 450M,,,
a miner cannot cut to zero and expect to still be operating....margin still contracting, production is flat, debt is very high for a price taker, end of story ATM
As at 30/6/2013 NCm had total debt of 4.211Billllllllion Less 68 Million in cash and equivalents
to give you 4.172 Billion in NET debt
Interestingly they built up inventories considerably,,,,building inventory as the priced dropped......another interesting move
NCM Price at posting:
$7.16 Sentiment: Hold Disclosure: Held
