Welcome back Auto There is much more to a company's balance...

Welcome back Auto

There is much more to a company's balance sheet than cash and inventory, and if you want a more complete and transparent picture (including receivables) you should look at the company accounts which are issued every six months. I have previously explained in detail how the balance sheet has strengthened over the last couple of years and don't want to go over the same ground again.

The biggest flaw with your argument is that you ignore the large capex investments ($80-90m? on the new mill alone) that were funded out of organic cash generation on the basis that they should be reported as sustaining capital. This is clearly incorrect as these are one-off investments that will service the mine through to end-of-life. Once the investments are complete and the mine is back to normal operation, the cash surpluses will increase substantially (depending on the IO price).

Obviously the balance sheet has taken a hit in the last six months but if/when the mine gets back to normal operation it will start to improve again.