Cheers Plough,I read it exactly as you have put it.EVG has spent...

Cheers Plough,

I read it exactly as you have put it.

EVG has spent $22.5 mill to-date getting the project to where it is.

In the AR this is shown as an "intangible asset" on the balance sheet and explained in Note 18 (page 55). On the 30/06/09 this asset (which is the LL Project) was valued at $20.19 mill.

Since 30th June they will have spent more money developing it to get the narrative of $22.5 mill "spent to-date".

Through the contributions of Mac Bank and the Dominican Bank ($40 mill debt) EVG will get the project to operational status.

So, EVG don't have to invest more 'cash' into the project to get it operational as they have already invested that cash previously and capitalised it - as the LL project will become a "cash generating unit".

From an accounting perspective it is completely legitimate.
Hope this helps.

Cheers
John