negative cash flow

I've just looked through quarterly report ending March 2008]
At 31 March 2008, cash and deposits totalled $85.5 million (Dec quarter $136.4 million). The drawdown in the cash balance was due to the following significant items:
• An increase in working capital at Broken Hill resulted in a net operating cash outflow of $13 million,
• Capital investment of $5 million at Broken Hill, the majority of which was in new fleet equipment,
• Mine development at Southern Operations, North Mine and Potosi of $11 million;
• Debt repayments (commercial hire purchase agreements) of $4 million; and
• Tax payment of $8 million
At the end of the March quarter the company had $28.2 million in debt (Dec 07: $24.2 million).

So cash balance should be around : $136.4 - ($13 + 5 + 11 + 4 + 8) = $ 95.4
But why there's only $85.5 million cash left ?, would that represent $10 million lost from operation for the quarter ?
Or maybe more given the debt level has actually increased by another $4 million ($28.2-24.2).
If this is the case, this company might be suffering from diarrhea and starts losing weight rapidly. The appreciation of AUD$ and zinc/lead price drops have make it even worse.
Can't wait to see the blood test (3rd quarter report).
Merger is the only remedy IMO.