tks guys22 Sep 2014 10:59
. I am Jolly concerned about cash here...so will wait and see here before loading up
...there is the Kenyan mine that may or may not be at breakeven and they want to invest more in SA ops...which sounds sensible...but how much and how financed? "The Group produces both bullion and high grade concentrates, which are sold to a local South African refinery in Johannesburg. While the cash receipt from bullion sales is rapid, lengthy delays in analysing and processing the concentrates have been experienced over recent months, resulting in both stocks and receivables of the Group increasing without the Board being able to control such increases. This in turn has put strains on cash flow and has resulted in the management team seeking other solutions that will add value and also grow the business. The Board has therefore decided to invest in additional processing equipment in South Africa and Ghana that will enable Goldplat to increase bullion production and lower the concentrates output. In Ghana, in particular, this will have a number of advantages; we will comply in advance with specific permit requirements to export metal rather than concentrates and mitigate environmental concerns. Importantly, this will enable us to internationalise the fine carbon business in the free port of Tema by bringing in material from around the world for processing
Additionally, we have received approval, since the end of the year, to set up a recovery business in Burkina Faso. These projects will require substantial capital investment, and, given the delays with the current South African refinery as well as the capex requirement, the Directors have resolved not to recommend a dividend in respect of the current year. In the longer term, the Board intends to resume dividend payments as soon as it is prudent to do so."
...also cash up largely cos payables jumped..why and is this sustainable
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