In FY 17 the holdings of cash equivalents did go up circa $20m....

In FY 17 the holdings of cash equivalents did go up circa $20m.

Q1 FY 18 was not a stellar appearance at first glance, cash equivalents were down by 3.5m. There are however a number of items that won't be persistent. Working capital increased by 4.7m - this won'to be a regular occurrence (although it does continue a trend over FY17). The increase in working capital stems from an increase in ore stockpiles and these stockpiles will be further processed down the track. Project capex for and stamp duty paid will drop off in the near term. The exploration budget appears to be producing positive results although perhaps the company could communicate this news and any plans stemming from exploration better.

My call is is that the quarterly report coming out in March 2018 will paint a really positive picture. Cash flow will be strongly positive and, together with the cash holdings in hand, the company's SP will be reevaluated.