Ongoing production activities:Production costs (895k)Trade...

Ongoing production activities:

Production costs (895k)

Trade receivables $1.2m from processing.

AL80 Revenue to be billed 4500 tonnes * $AUD $350 = $1.575m
based on an alumina price of $US390 to $400 per tonne as previoulsy shown.
Landfill processing to start $???

Revenue: $1.2m + $1.575m = $2.775m minus production costs $895k = $1.88m.

The AL80 will no doubt be billed and either not paid for at all, or partially paid. But on an accrual basis, the above figures represent the quarterly operational profits without adding landfill processing profits, or deducting part of the admin costs from the overall result.

If landfill processing starts and adds value while production costs remain steady, then profitability looks excellent.

I feel that management need to come out and confirm that margins and profit estimates are as expected. Or that they are not.