gdnoa - dead in the water?, page-7

I have the expertise, but not the data.

In the past, when GDN announce in the quarterly cash flow how much they will spend on exploration in the following quarter, they only include the expenditure incurred in that quarter. They do not include payments to creditors at the beginning of the quarter.

Example: At Dec 2006 they owed suppliers $5.262m per the half yearly report. In the Dec 2006 qtrly, they estimated Exploration and Evaluation expenditure for Q3 of $2.5m. Actual expenditure and evaluation in the Q3 cash flow was $6.361m.

So, IF they owed the rig company $1m at June 30th, they'd be paying out $2.29m per the qtrly and $1m to creditors, total $3.29m, which is the total of their cash (after paying off the loan). They are mixing cash and accrual accounting together.