Part one is a spend of approx NZ$5m. This is basically to build a big shed so as tonnage that is trucked down the hill can be stored undercover for environmental reasons. One certainty is that this shed will be more than suitable to handle the Ramp up to 150KTPA that will represent the expanded production from cascade and brookdale.
This NZ$5m is largely spent as represented by the cash flows you refer to.
The balance of NZ$25m will not be spent until Approvals are received for Escarpment. ie no approvals and Westport improvements stop. Therefore the ongoing cash burn in relation to the Port that you are concerned about are not going to happen in subsequent months or even the next couple of qrtrs.
Furthermore, now that the bottleneck at the port is cleard the expanded potential production can be released adding to the "cash from Sales", thus beginning to repair the positive side of the ledger
In relation to the additional spend for the revised infrastructure.
Gee Haw
It has been clearly stated on several occasion by management that if the Overhead Conveyer is approved for coal transport down the hill then there will be other financing options to put this in place. This will not come out of Cash Flow. And furthermore this spend will not happen until year 2 or 3 after approvals for Escarpment that allow for expansion to 2MTPA
So Haw
I was not questioning your maths skill. Just how/why you chose to analyse BTU's couple of qrtrs on the basis of its last qrtr in absence of the context of the last 18mths or its plans beyond Cascade and brookdale.
Your assessment rates a D-
Viney
BTU Price at posting:
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