RE:RE:How do a simple man value SherrittDear Count,
One of the problem of the financial is the different accounting treatments of Sherritt operations. Equity pick up for Moa, 1/3 consolidation for Power and the rest straight consolidation. So your financials become a bit murky.
Page 10 will give you combined Operations including 50% of Moa and 100% of the site. In essence, what I am investing in Sherrit. You can see that they generated 254 mm of the year as well as 112 mm of free cash flow. They even give you the sustaining capital (better figure than the depreciation wich is higher). Even then, we do know that a big chunk of cobalt was pushed in inventory and is not reflected in sales. So the EBITDA are understated as well as the cash provided by operation.
Of course, that free cash flow is not all in Sherrit coffers, part of it stays at the Moa level until it is dividend out and recognized as income on the financial. But it gives you an idea.
As to the interest, yes it is a cash expense. So deduct it you want and adjust if you wish for the repayment of the long term debt by the end of the year when it could have been paid out.
On the earnings side, a big chunk of expense was the revaluation of the SUs. 40 mm of those will be paid by the end of the month. So, one should do some adjustement for these expense in the future.
GLTA,