Alterra Power MGMXD

RE:RE:RE:1/3of a billion....

[materialsgirl]

Tayjon
The non-cash term is a ploy by management of companies to soothe the saddened hearts of investors.  The intention is to create the impression that it does not matter.

The thing is that 100% of all write-offs in any business are 100% cash.  The Tomfoolery term is like this;

Let's say that AXY spends $15m cash developing a wind farm in 2016 and quite rightfully describes the outlay as a capital investment.  Then a permit is denied in 2017 and the whole project is written off and it can be described as "non cash"  The true meaning of the term is that there is no cash charge during 2017 as the cash was spent in 2016.  Conceptually this could be repeated year after year after year all the time being classified as a soothing non cash expense.

The initial year can eliminate the $15m also from cash flow by using the term Adjusted cash flow.

A company can "non-cash" themselves into bankruptcy in this way

So.  Always be very suspicious of any accounting term that mighr be used to try to fool us;

cash cost, all in sustaining cost, non cash write off, adjusted "anything".  The number has been adjusted mainly to make the numbers look better and to soothe us.

All-in sustaining cost is an immoral term used in gold especially.  It is intended to sound like "all in costs" but it sometimes $200 to $1,000 an ounce in costs are omitted.


In summary, write-offs are part of any good business.  My point is that if $15m write-offs per year becomes normal at AXY the business operation is junk.  It will be a loser.   Of course, if it writes off $15m over 10 years that would be just peachy.