First thing is that its $16m operating cash flow not profit. There is a huge capital cost to get the operating costs down.
The company will make a tiny profit for the half, if any. And they have already given that to the management (options at 20c) for doing such a fabulous job. Happy enough with the direction they are taking the company, but hard to see the justification for the 'incentives' (=bonuses) when the company is not yet profitable.
Still deciding whether to exit. My Greed relies on my belief that the company can reduce its cash costs further. My fear is that that the management are going to strip all the profits for themselves, and leave nothing for the owners.
NGF Price at posting:
22.5¢ Sentiment: None Disclosure: Held
