Real profit is 25% higher than the annual report leads you to believe. $13M-16M of profit is hidden in inventories.
As I did for the half year I've gone thru and adjusted the full year's P&L to reflect the real profit if ALL the gold credited to the perth mint was sold - as opposed to how it is currently held on the balance sheet as stock at cost of production. This would mean sales of 103,747ozs instead of the actual gold sold of 73,287ozs. The result is profit goes up to 78c per share for the year - on an after tax basis.
My calculations are included below and you will see the average price received was $1,606 per oz of gold over the year. This is the price I used for the unsold gold to determine the adjusted profit.
Gold is currently $1,710 per oz.
TBR Price at posting:
$7.00 Sentiment: Buy Disclosure: Held
