gindalbie urges patience over karara delays, page-4

There is something else I noticed from the Karara accounts. The statutory net cashflows from operations was a positive $24.164 million. That's right Karara had a positive cashflow from operations, and this was after interest paid of $51.391 million.

How is that possible I hear you ask?

Well, because they capitalised all the magnetite related production costs and revenues against infrastructure because they are still commissioning the plant.

Maybe I am cynical, but of course they are going to be operating cashflow positive by 1Q 2014, because they already are (on a statutory basis). Considering that KML will be continuing to resolve the concentrator issue for the next 12 - 18 months they will be continuing to capitalise the magnetite related costs.

Tell me that this is not how they plan to achieve positive operating cahsflows.