I have been looking over the quarterly to find out the mystery in the numbers. I believe they are in 2 key areas:
1. The cathode that is sitting awaiting to go over the border
2. The current stockpile of HMS concentrate which is to be sold in this quarter:
This will result in the following:
6,300 T of Copper Cathode @ $6,700 per/t, assuming $1.56 C1 (but add back non cash cost of ROM), is a total C1 cash of $1.24. Lets assume head office costs are $0.32, then total costs of $1.56, gives us profit of $1.44 per L/B. This is free cashflow of 6,300 x 2,200 x $1.44 = $19.95mill
Then there is the 17,550 T of Concentrate sitting around - no production costs, shipping and marketing only. Worst case $2 per l/b, leaving a $1 per l/b free cashflow (I can't see it being this high but worst case). This is free cashflow of: 17,550 x 2,200 x $1 = $38.6 mill.
At end of quarter they had $71 mill and drew back $50, giving $121 mill. They spend $100 mill paying Geca, so $21 mill in the bank plus $19.9 mill plus $38.6 mill = $79.5mill in cash.
I may be a little out but this is what is looks like to me. All the costs of HMS were in the last 2 quarters with bags of the stuff sitting without sale. I am assuming only at nameplate, not 28,000 t p.a. which would improve the quarter by an extra 2.21 mill.
Expand
