get a grip, page-65

speculator101, my comment was in relation to Lighthouses's profit calculations. Lighthouse might be right about the cash margin on sales, but when the company has to give silver to the bank, whilst they book that as a sale, offsetting debt, there is no cash flow. So they have no revenue stream from that 720k oz, but still pay out money for all the costs of production and admin.

Profit and cash are separate things. Profitable companies go bust, because of poor cash flow. Unprofitable companies can survive, if they have cash flow, as part of the calculation of profit includes none cash items, such as depreciation and mine cost amortisation. If CCU had used equity to pay for the plant rather than debt, they wouldn't have the hedges which would be one less complication.

But then they would have had more shares on issue.