Don't interpret consolidated cash on hand as actual cash at bank. 25.8 mill is tied up the Mungana Mines spin-off and 21.3 million to 23.8 mill is receivables or stockpiled metal. I calculated it to be have been about 22.2 at the end of Q2.
They started Q3 with about 10.8 million cash at bank. I credit them with about 10.3. They'll bank circa 70 mill this quarter as the proceeds from the sale of LL are realized. This should reduce inventory to 12.9 as all stockpiled nickel will have been sold off as part of the LL sale and stockpiles reduced as a result of lower production in Q3.
At the end of the day their loss for the first-half is mostly a paper loss. They recorded a -15.5 EBIDTA loss but they spent:
-24 mill on development YTD -15 mill on exploration YTD -16 mill on acquisitions YTD -10 mill on debt reduction +25 cap raising
net -40 million of significant expenditure H1
It is not as though have spent money with nothing to show for it. The circa 55 million spent on developing the business has delivered successful exploration results, firmed up inferred/indicated resources & added to mine/project life over the longer-term.
KZL Price at posting:
19.0¢ Sentiment: Buy Disclosure: Held
