RE:InventoryThat is an interesting question. That inventory number has been building since 2011 but so have sales. In the latest period compared to same period 2014 we see an inventory increase of $1mln vs a drop in sales of $2mln.
Any direct competitors we can compare the number to? vs sales etc...
In the last few years I do not see any inventory writedowns, so my guess is they do manage to move the material before the shelflife expires - but I have no expertise as to explosive emulsives shelf life. Anyone? Building the inventory number is more honest than pushing product out the door to distribuors (or storing at the mine site ) and calling it sold even though revenue is not actually received, but agreed, it would be a good way of hiding wasted and unsaleable material.
I think the important number is that in a difficult period for the sector they are actually just about cash flow positive. When the depreciation is added back in it is pretty close to even.