RE: Newcrest Loan- and my view on Cash22 Jul 2022 14:13
From interim results released in March
"The Group has recognised a foreign exchange loss of £581,303 in the income statement as a result of the US$27,188,755 million loan held by the Australian subsidiary with Newcrest Operations Limited in respect of the Havieron Joint Venture".
Going Concern
"The consolidated entity has incurred a loss before tax of £3,588,686 for the six months ended 31 December 2021 and had a net cash outflow of £9,941,391 from operating and investing activities. At that date there were net current assets of £12,239,930, with cash of £14,286,415. The loss resulted from exploration costs and associated administrative related costs.
Given the Group's current positive cash position, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. In addition, the Group has access to a loan facility for its share of Havieron Joint Venture expenditure up to US$50 million and is able to significantly reduce expenditure on its own exploration programs if it wishes to do so. The Group also has the ability to raise capital for expansion purposes, if required and has demonstrated a consistent ability to do so in the past, as well as potential to debt fund its share of Havieron development.
Having prepared forecasts based on current resources, assessing methods of obtaining additional finance and assessing the possible impact of COVID-19, the Directors believe the Group has sufficient resources to meet its obligations for a period of 12 months from the date of approval of these financial statements. Taking these matters into consideration, the Directors continue to adopt the going concern basis of accounting in the preparation of the financial statements".
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So it does look as if Greatland's view of the world is a little sharper than some armchair pundits on here.
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