Allmine made a profit before tax of $16.2 million which looks...

Allmine made a profit before tax of $16.2 million which looks good on the surface. However nearly $12 million of this pre-tax income related to 'accounting profits' as opposed to actual business operating profits. See note 5 in the annual report for full details but effectively it related to accounting treatment of their acquisition of CIA --> without this the normal business of Allmine only generated about $4 mil pre-tax - nothing near what AZG had always forecast.

It also appears that the final payment for the Arccon acquisition has become due as per note 33. This payment was meant to be become payable only if Arccon generated a net profit of $5.5 million - how they managed to do this when the underlying operating business only generated circa $4 mil net profit before tax, I don't know.

I have completely sold out of AZG at a loss, ever since last year I had felt that things just didn't quite add up and the annual report reinforced that view - pity I didn't trust my gut, lesson learned.