NR here, IKN comments in one simple and easily understandable image:
I loved the way Marrone’s band of funsters told us this about the key issue, the balance sheet:
Balance sheet as at June 30, 2017, includes cash and
cash equivalents of $132.3 million, representing an increase of $26.4
million from March 31, 2017, and available credit of $823.6 million for
total liquidity of approximately $955.9 million. Net debt(1) decreased by $22 million ($2 million consolidated with Brio Gold) from March 31, 2017.
Oooh look, cash is up!! Net debt down!! No matter that the truth about its liquidity position, working capital, shows the financial reality that AUY is slipping into serious trouble:
Cash up $26.4m? Nobody cares, because working cap is down $17m and the main reason is its loan book, big fat nasty financial debt now coming into current liabilities, AUY has to find U$110m by this time next year or face the doo-doo.
This is why Marrone has been so desperate to monetize the junk that is Brio Gold (BRIO.v). But when you’re facing U$110m in hard cash debt repayments in 2018 and another U$223m in 2019, you need to return profits and this is a company that ran to a 2q16 loss of U$36.8m. Math don’t lie, people lie.