gloucester coal is undervalued , page-3

Izalokar,
Gloucester coals profit is understated, in as much as they have carry forward tax losses from some years ago when they lost huge amounts on hedging the Oz dollar and currently have NO tax to pay

Their profit as stated is
•EBITDA $34.7m

I rang the company to discuss this with them, and in particular their reported AFTER TAX profit

•NPAT $21.7m•Revenue up 107%

And when I queried them on this they said this was the accounting convention & indeed I was correct and they had no tax to pay.

So their available operating cash flow was not $21.7 mill but an even more impressive $34.7 mill.

I just cant understand how they don't make this clear to shareholders at the time of announcements.
(They still have quite a few tens of mill of tax losses to offset future profits)
In the meantime this past week has seen them strengthen in price.

Im still looking for a decent rise from here to bring them into line with the p/e some of the other coalers.

Cheers

Bendigo