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miningnut

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02/09/17

07:35

Post #: 26947176
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Originally posted by miningnut ↑

My few thoughts on the numbers:
1) Cash at bank $11.21m higher than I expected but only because Gold awaiting settlement(Note 7) was down from $12.51m last year to just $0.31m this year. They used to wait for a month for gold settlement but now it looks like just one day as $310k is the value of one day's production. Now I'm thinking this might have something to do with a 100% owned subsidiary that was incorporated in HK on 23Jan17 named Komo Diti Traders Ltd(Note 22) - sounds like their gold buyer is a HK organisation and that Komo Diti has a USD bank account where funds are deposited before being transferred to the Philippines and they might keep a percentage of the receipts as profits in HK. I think a reading of Note 28 confirms this.
2) Trade and other payables $19.57m against $13.44m last year. That's a large amount this year and I wouldn't be surprised if they did a large creditors cheque run on 1st July. So maybe a little bit of Balance Sheet window dressing for 30th June between cash at bank and trade payables.
3) Exploration, evaluation and development capitalised A/c $122.99m is broken down to Exploration and evaluation $56.55m that will sit on the Balance Sheet and not get amortised, and Development that is amortised over the expected mine life - they used eight years in FY17 so will amortise it at 14.3%(seven years) in FY18.
4) Total Borrowings $10.50m as against $7.57m last year. That is not onerous and with expected cash flow surpluses in FY18 will be easily managed if repayment is required.
I think their net cash position would have been much tighter during the first four months this year but that good production in May and June has eased the situation to a large extent.

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In 3) Development costs capitalised amount to $66.44m, so amortisation expense in FY18 will be $9.5m(14.3%) on that opening balance.

Last edited by miningnut: 02/09/17

MML Price at posting: 29.0¢ Sentiment: Buy Disclosure: Held
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Not so bad ..., page-4

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