RE: RE: RE: RE: Undervalued stockWhat I was saying is that the debt as indicated on the Q3 Balance Sheet is not $114 million as you stated (LT debt only), but $173 million (ST + LT debt, $59 + $114, respectively). It's not a matter of accounting wizardry, but just a number that wasn't included. That's all...
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I see where you are coming from, but $37m of the $59m short term debt you refer to relates to trade creditors that do not have interest charges levied or contractual repayment dates. As you can see from the comparison with 2011’s trade creditors of $34m, this is a “normal trade credit period” which will likely continue year in year out and this supplier financed credit may even increase as production increases. Whilst, at the end of the day, the $37m is a current liability, this is not normally [in the UK] referred to as company debt in the same grouping Debentures and Fixed Term loans with contractual rates of interest and repayment dates.
In my initial response I did not notice the $14m LT debt allocated as a current liability and therefore ethe LT total is $126m [102m + 14m]
However, even adjusting for that, with cash and stocks of bullion at $111m, the level of gearing with total debt at $126m is miniscule for a company with $1bn paid up sc. Although that SC is tied up in mining interest, that is the conventional way that business fixed costs should be financed.
I have seen a lot of heavility leveraged company’s and this is not one of them.