You seem to know your stuff TL. When I looked at previous year...

You seem to know your stuff TL. When I looked at previous year results they would have been strong profits had they not written down so much value on assets (nearly $600 million) over two years. In 2014 they received a tax benefit of $57 million and in 2015 they paid tax $65 million so tax over the two years was net $8 million. After writing off $580 million their total losses over the two years the final total losses were only about $380million so I expected cash to improve by $200 million as write downs are non-monetary. However the $200 million cash seems to have been spent on plant/equipment and mine property development over the two years according to the cash flow statements. So then I look at the balance sheet and note prior to the two years plant and property was valued at $530 million and now it is currently $100 million (difference being the amount written down) after spending nearly $200 million.

What I am trying to work out is, can they spend money developing property just to write-off the following year? My understanding is that normally the value would be depreciated over time but in GRR's case it appears they are immediately writing down the value and not claiming much depreciation (only about $25 million over 2 years). Also, given they wrote so much value down and incurred big losses, do they have tax offsets against future earnings?

It appears they have been doing everything they can to write down the value of the mine property to the point where only $100 million in value is left. Is this to avoid paying tax on earnings they were actually making over the last two years?

In regards to your 2016 estimate, given only 0.5c divvie has been paid during the year would this figure be only around $5.5 million?

September quarter may have been average but I feel the final quarter could be very strong given the much higher prices of pellets (as it lifted substantially in november) but would also depend on total sales for the quarter and whether they capitalised on these higher prices.