read the cashflow report - the liabilities are apparent. drilling and exploration
Per the accounts needing review - erring on the side of conservatism like a good accountant would, you take up the payables as current as there is a possibility that the contract would be fulfilled in the current year.
Yes, the cash will be drawn down over time - good pick up... however, go read aasb6 and tell me the affect that this will have on the financials of tdo (balance sheet effect only - no changes to net assets)
From an accounting point of view to a trading point of view - bolstering and suppressing the sp of illiquid stocks on the asx is ridiculously easy for people with a lot of cash, so using the sp of 2.2c compared to 2c does not miss the point at all.
You also mentioned revenues?? this is currently an exploration company - so that interest they are earning on their cash is the only form of income we will be seeing
So, the cash balance gets drawn down, but the net assets remain the same. Just like dls' sp was 2.2c at the time of the announcement, tdo's cash backing per share was around 6c.
TDO Price at posting:
9.2¢ Sentiment: Hold Disclosure: Held
