Today's chart & trading, page-1316

I think if you go and look at the NdPr charts back to 1 January '18  you will see that they indicate that H1 is not going to be very good.  If you go back 18 months and factor in contract delays.  I think FY 2019 Q1 and Q2  will have lower profits than any Q in  FY2018 I know profits are not published for Q1,   it is not hard to use cash flow report and last AR to figure out ABOUT what they are.  My guess is H1 will be Less than 1M to negative.   If less than 1M, but positive,  I give credit to accountants not operations. 

 

  They did not sell 392 tons  of the La and Ce made, it was put in inventory Q4.   In Q3 they sold about the same amount from inventory.    Now prices for both La and CE dropped in June.   If they sold this at market price they would probably would have been forced to reevaluate all the Ce and La inventory, there is allot.  Totally legal,  trouble is since prices have continued to drop the inventory will have to be reevaluated before SAR for H1.       If prices go back up then there will be no problem.    Right now trend is still down and there is not much time left till end of December. 

When I say accountants I am not implying anything illegal. Thereare lots of gray areas where profits can be boosted legally, Reserves, CapEX,   Inventory, are the three most common but not only ones.   This is great for short term problems.   All of them decrease future profits so if you do it for more than a few Qs it comes back to bite you.   The hope is that things will improved and it will not be a problem.     In US which publishes Cash flow Balance sheet and P&L every Q, you see it often.  A company will go a few Qs marginally profitable then suddenly very big loses.    Big loses are because system could not be stretched any further, legally,  once you go RED the normal practice is to clean everything up allowing  a fast return to Black.     It is not done just on down side.   (this can create a great buying opertunity if you know how to spot it.)   I worked for a company that was growing fast with great profits.  We all knew there were some short term rough patches ahead.  Accounting wisely increased reserves to max justifiable.  Keep inventory evaluations as low as possible.     Accelerated some CAP EX depreciation.   Hit rough spot and sailed through without a glitch.     All this is reported in notes and other details in the reports.  Fact is very few people read details in the notes of SAR & AR reports and compare with old reports, so they do not know it is happening.