The negative cash flow you derive from the increase in net debt in 2011 and 2012 can be attributed to part of the capex for BH and the PK upgrade/expansion. Pretty modest in the context of capex for these projects, most of which was paid for out of operating cash flow.
Nevertheless, prudently, the company waited until these two large capex expenditures were substantially complete before commencing dividends.
As you note current liabilities are not an issue.
" but commitment to borrowings in current liabilities jumped approx $100m in 2012 "
I really don't know what you are trying to say with this?
Really on balance P I think you are trying pretty hard to paint a negative picture of a miner that remains pretty robust at today's commodity prices. Sure the drop in these has taken a lot of shine off, but others are actually hurting. Dividends appear both modest and sustainable to me.
EL
PNA Price at posting:
$2.19 Sentiment: LT Buy Disclosure: Held
