Ann: Activity Report Quarter Ended 30 Sept 2018 & Guidance Update, page-6

Previous post had typos and replaced. 

I could’t agree more about management’s reports continuing to make it difficult for SH to clearly understand the real position regarding actual costs, cash flows, profits, and cash in the bank. And as usual plenty of different units of measure being used to help obscure what should have been explained in easy to understand figures. Although, upon re-reading the report I think that it is an improvement on previous reports. 

SH and the market should be advised as to the actual figures and changes to the company’s cash positions.  Such as previous and current debt, cash in bank and on deposit, “profits”, and future estimates of same. 

If debt reduction of $12.5m for the Q, does this lead to implications of potential annual profit or cash available to pay SH $50m pa.  Ignoring of course future reduced copper and gold grades and production, and lower grade ores but adding back less overheads, 

I noted that the areas of tenements in south east SA now seem to be quite large.  Hopefully potential here will be realised.  Also the new discovery “south of the plant”. 

I am a little concerned that it looks like mining will cease mid 2019, with delays before it recommences.  With associated downtime implications and loss of existing workforce and skills, since decision on new underground mining is being delayed whist awaiting PHES decisions.  Presuming that only some staff and machinery will be used on mine site rehabilitation in the meantime.    

I recall previous complaints on HC about the Company’s and management’s lack of clarity in company reports as to the actual cash position.