Headroom & Cash Flow, page-58

You claim that i cant use Balance Sheet in combination with the income statment to forecast cash flows.

I provided you a simple example, where delayed gold had settled in the second half (Hence my rational for using balance sheet's current assets less current liabilities) in addition 1,100 ounces of gold were also produced and settled in the second half (Using the income statement and opex cuts i was also able to forecast the next half's income statement, inaccurate of course, however the margins are likely to be accurate.)

Hence the delayed gold and the forecasted gold can give us a good indication of how much cash will be coming in.

You are however right in one instance, it would be better if i was to use the second half financials from last year, unfortunately Quindell's integration distorts these figures significantly. My Income statment might be a bit off, the margins should remain the same though. However, my Balance sheet analysis is spot on. At least 254mil (keeping all else constant) will settle in 6 months time, that cash will probably be used to fund a range of things hence i dont expect to see $254 of clear cash, but nonetheless it will be a decent portion to be used against the loan.

FYI

254mil (2H) - 62mil (1H)= 192mil approx. for the year.

Doesnt seem that unrealistic does it?