I agree, it does look like they may have someone on work-experience in the finance and admin section...
First up: but for the cash injection of $15m from the UK MCO would have run out of cash in the quarter (though maybe they splurged only after getting the cash).
Second point: in the September quarterly they estimated the following cash outflows for the December quarterly: $300k on exploration, $300k on development, $100k on production and $400k on administration.
However the reality turns out to be $635k on exploration, $1685k on development, ZERO on production, and $1097k on administration. Obviously MCO put any numbers in the September quarterly for estimated cash outflows for December but still some massive variances there.
The figures suggest a blow-out in the cost of developing the mine and plant. Could be the new winch? Also looks like they had some great Christmas parties with admin costs for the quarter being 2.5 times that they estimated in late October.
Why would anyone bother using the estimated cash costs figures in the December quarter?
I look forward to the quarterly and Nick baby coming clean as to what has been going on at MCO.
MCO Price at posting:
44.5¢ Sentiment: Hold Disclosure: Held
