Thinking about this further - and looking at the cash flow report, NPAT wouldn't have any income tax cash outflow because they would be utilising prior year losses ($10.6m at FY16).
Normalised FCF to equity might be more like sub $3m after adjusting for:
* equipment supplier compo ($0.8m)
* income tax normalisation ($0.6m based on $2m NPBT)
* conservative maintenance capex allowance of $0.5m
* allowance for increased employee costs from new staff who have only worked a part year in FY17.
With those allowances FCFE yield is still a decent 7%+ after today's trading (though concern is whether or not management will do the right thing and make the FCF available to shareholders in the next 12 months).
GRB Price at posting:
4.5¢ Sentiment: None Disclosure: Not Held