Are MUN shareholders excited? MUN reported "EBITDA of A$1.6M for...

Are MUN shareholders excited?

MUN reported "EBITDA of A$1.6M for the Quarter from Engenho operations" and "EBITDA of A$0.7M for the Quarter from Peru trial mining operations."

The problem is these are just paper profits.

MUN also told us that there was "June Quarter gold production of 5,148oz at a cash cost of A$862/oz, with key production and development budgets achieved."

What more does one need to say?? What about key cash costs achieved????

Note that at Engenho "grade for the Quarter was slightly lower than budget due to an isolated dilution event in one stope where blasting produced excessive waste in one section in May. The mine call factor for June was 100%, confirming that the issue was an isolated one."

So let's just understand it was only an "isolated" event. Problem is MUN now has a track record of one different "isolated" event after another that has adversely affected gold production. When do we stop using the spin that these are all "isolated" events?

What interests me of course is the quarterly cash flow.

"Receipts from product sales and related debtors" was $9.883 million.
"Interest and other items of a similar nature received" was $22,000.

But:

Payments for
(a) exploration & evaluation - $1.623 million
(b) development - $1.278 million
(c) production - $5.775 million
(d) administration - $1.461 million
Interest and other costs of finance paid - $116,000
Income taxes paid - $487,000

Net Operating Cash Flows - $835,000 loss

Now add to that:

Payment for purchases of:
(c) other fixed assets $1.798 million

So Total operating and investing cash flows was a loss of $2.633 million.

MUN continues to lose money. Note that Administration set MUN back $1.461 million for the quarter. Everyone who shared in that $1.461 million for the three months made money out of MUN. As for shareholders, well that's obviously a different story at this point in time.

Now what's happened to that accounting profit in the real world of cash flow - the EBITDA of A$2.3 million for the Quarter? Looks to have disappeared to me.