Jul. 4 at 12:37 PM
$AABB
As Q2 approaches, don't just look at the headline numbers. Look at where the improvement comes from.
Things to watch:
• Does the
$2M Bonanza promissory note get booked? That's legitimate if collected, but it's a one time cash event, not operating performance.
• Does cash increase because the business improved, or because of asset sales, financing, or one time collections?
• Does "retained production" grow again instead of being converted into revenue?
• Any increase in bullion? Is it supported by production and purchases?
• Any new intangible or balance sheet assets that boost book value without generating cash?
• Any gains from property sales or accounting adjustments that make earnings look stronger than the mining business actually was?
The real question isn't whether the balance sheet gets bigger.
The real question is whether Etzatlán is producing the sustainable cash flow management has been implying for well over a year.
One time gains come and go. 👇
