RE:Q4....What is going to look bad, net income or cash?
Since your largest number is income tax (10,3 million$)
For net income
Every quarter, provision for income tax already is subtracted to get net income. It doesn't look like they would take the entire total income tax payable for the year and subtract it again from Q4 when they already took provisions for income tax in previous quarters.
For cash
Do you pay your income tax in Dec.?
They don't even have the year end financial numbers out yet, so how can they pay income tax in Dec. Q4 if they didn't know the exact amount of income tax to pay for 2016?
The short term liabilities include $11.5m amounts payable for acquisitions of mining interests related to the Marmato Project (that $11.5m makes up over half of their working capital deficit); from MDA. They are trying to renegotiate or cancel those contracts. They don't need to acquire those extra mining interests and is not essential to GCM current operations.
They don't necessarily need to immediately pay that in Q4. They haven't paid that in previous quarters so why should they be paying that in Q4.
What happens when you buy a product and don't pay for it? They take it back. Not the worst thing that can happen.
kkkrrrr wrote: maybe some people will be dissapointed by Q4 number ... Short term assets end of Q3 was 31 million USD ..short term liabilities were at 50 million USD end of Q3 ... they had to pay around 18 million$ in Q4 (wealth tax (1,5 million$) , income tax (10,3 million$), provisions (3,2 million$), Equity tax (1 million$), portion of long term debt 1,6 million$) ....
free cashflow could be negativ for Q4 but balance sheet will look better now ... the working capital deficit should be removed soon ... 2-3 good quarters and the ratio short term assets-short term debt will be zero ...
they have to pay back the provision (enviornmental discharges 10 million$) soon as possible because the bear a high interest rate...
..balance sheet is improving....