Mitchell Drilling, page-7

Hi @DaLatta –

You may be right that Mitchell Drilling is the creditor in question since they are the only major trade creditor that seemed to want different terms.

Where are you getting all your figures from, however?
Mentioning what you mentioned below in italics–
“Looking at the last accounts:

1. Current liabilities listed trade and other payable $786m so presuming TON were running at that level or higher.
2. Tax provision $2.15m
3. BB departure notice states $$530,116 added to current liability account.”

I just checked 2014 accounts (signed in March 2015) and trade and other payables (note 11) was just 467 K (2013: 249 K); other current liab (note 12) was nil in 2014 and 1.5 million in 2013 while provisions were just 208 K (2013: 49 K).
Total current liabilities in 2014 was 676K while it was 1.8 million in 2013. Non current liabilities was an absolutely immaterial provision of 3 K (2013: 1.6 K). Very manageable amounts, really.

Coming down to the notes, we see in note 11, that creditors was the main part of trade and other payables (407 K in 2014 and 208 K in 2013), and I wonder if Mitchell could have dramatically shot up this year. I too would assume that Mitchell falls here.

Other current liability (note 12) of 1.5 million in 2013 was not applicable in 2014 and in any case pertained to share application funds for unused shares. So, in any case, there would be cash against it. Nothing in 2014 and nothing worth bothering about now too.

Coming down to note 13, we have routine provisions. Once more, nothing significant at all.
So really not sure how you are getting 786 million $ in point 1 above

Coming down to note 16, we have unrecognized tax benefits (deferred tax assets) against our tax losses. So once more, not sure how you got tax provision of 2.15 million

Lastly with regards to BB notice, 12 months’ salary and accrued entitlements for Mr Boyle will total $599,036, with amounts due on Dec 15, Jan 15, Feb 15 and the main one (9 months amount) on March 15. As you say, this is the major current liability right now for Triton.

Can you tell me where you are getting your figures from or if I’ve got something wrong here…..???

I also checked contingent liabilities too and there were none in 2014 and 2013. I find it odd if an actual major liability crystallised in 2015-16 which was not even identified as a contingent liability in previous 2 years as contingent.

Maybe, I’ve made a mistake above. So please let me know. But I couldn’t find anything at first glance. Also, I wonder how the Mitchell Drilling amount could have shot up dramatically although it is theoretically possible with significant drilling at Ancuabe, P66 etc as you mentioned. I still find it weird that we wouldn’t be able to very comfortably meet this with the 4 million, taking into account previous year's figures.

It was odd though that we had to obtain deferred payment terms with major creditors (not just Mitchell but others too), and maybe something else could also have come about in recent times, that we were not fully informed about.
Thanks.