profit up 655% after tax super result, page-5

kwaidan ... the numbers aren't as bad as monkey makes out. Let's look at the facts:

* Regarding payment of debt primarily from share placement from June 08 yes, but (a) until June 2009 debt was interest only, and (b) company's stated intent (up to now) has been to direct most free cash flow to exploration / development. SO, cash flow was used as follows:
Cash Flow: $29.6M
Exploration: $21.5M
Share Buyback: $4.3M
Residual Funds: $3.8M
Easy to see where the money went and is in line with both debt obligations and their stated exploration plans.

* Remembering that Current Liabilities are payable in the next 12 months (some might be 1 month, others 11 of balance date) of the $17M current liabilities $13.7M is bank debt. The core bank debt is repayable at US$750k per month. As such, about AUD$10.9M of this debt SHOULD be readily manageable from cash flow. There is AUD $2M that looks like a short term loan for who knows what payable basically now with half the rest being accumulated interest.

In short, only $6.1M of the current liabilities payable within a few months of balance date. Compare this to $7.3M odd of cash, inventories, and debtors the position LOOKS to be manageable.

Let's assume company wanted better liquidity. They have already raised $7.7M. They have achieved it without the additional 66M shares they want to issue. But still I'd ask surely shareholder would have come up with a measely $7.7M is asked!?!

Cash Flow is all about managing a business. Company wants to have their cake and eat it too, but have not proven they should be trusted. Past company statements have all been about the high drilling success rate. Note that 100% of their high risk wells were duds, over a year of exploration written off. My lower post showed how cash flow could be managed leaving funds for both exploration and a dividend.

SUMMARY: Monkey: balance sheet doesn't show anything as being imperative. My vote will support CVC's motions.

MJS

* With the initial placement (not needing shareholder vote) company