natural gas producer rolling in the cash, page-4

To me, the most important number is that operating cash flow...the rest of it is accounting jing-jang. At $14.7m for the half, and with Hermes coming on stream soon, and with the other recent drilling success, I just cannot see how we are not at $40m net operating cash flow. Of course, the bottom line net profit after tax is low due to hedging losses and the final write off relating to ARW. The uninitiated will look at the NPAT and wonder why we think this is so under-valued. However, at some point, someone with some real $$$ will start buying this, because the maintainable cash flow says "BUY".

Those hedging losses on the finance are a bit curious. I am not sure how that works, I would have thought that would be off-set by the transalation of the A$ value of the US loans dropping, but accounting is a weird thing.