Hello pb..... I hope you don’t give up star gazing ( yours was...

Hello pb..... I hope you don’t give up star gazing ( yours was one of the best {non-navigator*} charts ever !)
(*I have to use code words so those concerned don’t realise I’m a secret admirer) .

In crunching your numbers in regards the interim report and looking for ‘glass half empty’ scenarios you say maybe big institutional investors will be sour if they don’t like the cashflow....

Does capex impact cash flow or does cash flow happen before expenses?

I ask because I had the impression that not so much needed to be spent in 2018 ( bar the big Leibherr machine for Curragh coal mine and trucks for Gascoyne?), but NRW has already flagged new machines are required for the initial works at Koodaideri which I presume means all new contracts will also need new machines, plus there is possible machinery expenses if there is ongoing refurbishment of the Hughes drills, and RCR might need some spending too seeing as the previous ‘let’s-run-this-company-into-the-ground, milk it then debunk’ management were clearly running on empty?

As far as equipment NRW already has on standby, on Facebook it says it has demobilised at Carrapateena ..and the trial restoration earthworks at Argyle Diamond Mine for Rio were completed ( both ‘fleets’ possibly gone to Fortescue bar an extra excavator sent up to Gascoyne) but I don’t know what else has finished or is due to finish (South Flank won’t be done until December).

I would think the big time investors already know all this so why should they see cracks?

Also in regards any impact on cashflow from Gascoyne, didn’t NRW loan it $12million to ensure it would be able to meet it’s payment schedule to NRW and pay back the mines or else give us the mine?



Also I have another question which I hope someone can help with ;
The cash holdings were $58.8 million as of the 2018 Annual Report.
Then NRW restructured it’s debt and used “some of it’s own” cash to reduce the new loan with BankWest to something under $38 million.
Then it loaned Gascoyne $12million
Then bought RCR for $10 million
If it paid (random number) $3 million off the BankWest loan that means it has spent $25 million of it’s $58M leaving it with $33 million in hand plus whatever it has saved.
. I know I am mathematically incorrigible, but in the 2018 annual report it says the debt was less than $38 million ?
“New work secured across the group circa $1.7B; Order book: $2.2B as at July 2018 (3).
• Net Debt at June 18 $34.4M –
– Strong commitment to debt repayments - $31.3M repaid in FY18.”
Why should this be so? ....

Cheers