Lets not forget payment terms with LO are 720 days... The LO debt should really be revorded under Non-Current liabilities rather than current - if indeed the circa $18m current liabilities are related to LO - one for Mr Beattie!
Your correct in that RRL has little debt, short term liabilities are however high at $18M relative to a deteriorating cash balance, most of which ($15.5M) is currently ring fenced.
The problem is that RRL can’t finance its’ activities from current revenues even if oil price goes higher. It has to take on debt to recover the oil, the net revenues from which are not sufficient to repay that debt at current POO.
If you apply a time dimension to the accounts RRL would be in the same position as many other oilers, with debt that is preventing expenditure on further development.
If the $18M short term liability was not there it would have cash to develop the assets and become self financing as oil price increases.
As I have said before LO benefit before shareholders do. I suspect they are owed a substantial amount of this money. They get paid and re-cycle the same.
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