Dwarves and Middle Earth, page-36

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You can't keep referring to the reduction in inventory of $45m without also mentioning some of the offsetting cash outflows, in particular the $21m increase in trade receivables.  The net cash generated in 2016 after all outflows (including sustaining capital, capital investment, royalties, taxes, debt reduction...)  was $70m, so even if you adjust that for the changes in inventory and receivables you get to a net cash surplus of $46m.

As for my 'boast' about the 8c EPS in 2016, I am simply stating a fact.  EPS in 2015 was only negative because of the asset impairments which all industry participants experienced when the IO price collapsed.  If you adjust for impairments, they still made a profit in a year in which the IO price hit its lows.  The same applies to 2014.

Looking forward, the level of capitalisation for deferred stripping should reduce as they start to mine the main ore body.  Profitability won't increase significantly (assuming a constant IO price) as those capitalised costs are amortised.  Cash generation, however, will increase significantly as cash operating costs per tonne of output will fall.