1/7
Based on what I have just talked about if #HMI had received all the monies from its sales in 2021 then this would have amounted to $4.52m and the business would have been profitable at the operating level in 2021.
Based on what I have just talked about if #HMI had received all the monies from its sales in 2021 then this would have amounted to $4.52m and the business would have been profitable at the operating level in 2021.
https://twitter.com/BigBiteNow/status/1544259564215861249
2/
What's more, the $4.454m paid out in 2021 reflects more accurately the true costs to run the business over the course of one year.
One cannot conclude exactly how much HMI produced in 2021 because the cash receipts reflect payment dates and not when the goods were received.
What's more, the $4.454m paid out in 2021 reflects more accurately the true costs to run the business over the course of one year.
One cannot conclude exactly how much HMI produced in 2021 because the cash receipts reflect payment dates and not when the goods were received.
3/
Inventory was fairly minimal which reflects an operation that leans towards producing to order.
However, the costs associated with administration clearly eat up the vast majority of this with the consolidated statement accounting for c. $3.85m in the period.
Inventory was fairly minimal which reflects an operation that leans towards producing to order.
However, the costs associated with administration clearly eat up the vast majority of this with the consolidated statement accounting for c. $3.85m in the period.
4/
Although wages and salaries are included under this segment and were $490,052 in 2021 and are recorded separately from directors' fees.
I take these to be mine-related and so Brazil denominated. That would place the actual mine cost for 2021 at around $1.094m.
Although wages and salaries are included under this segment and were $490,052 in 2021 and are recorded separately from directors' fees.
I take these to be mine-related and so Brazil denominated. That would place the actual mine cost for 2021 at around $1.094m.
5/
The lack of any sizeable current (next 12 months) trade payables supports the argument that these costs aren't being kicked down to the road.
So assuming admin costs remain fairly stable ( and they aren't up by much compared to 2019 thanks to consultant fees dropping)...
The lack of any sizeable current (next 12 months) trade payables supports the argument that these costs aren't being kicked down to the road.
So assuming admin costs remain fairly stable ( and they aren't up by much compared to 2019 thanks to consultant fees dropping)...
6/
then the uplift in production running costs should come through in that $1.094m figure.
Even if it were to double (which can't happen because economies of scale will prevent that + the BRL/AUD is 10% weaker YTD) then cash outflows would still 'only' be around $5.55m in 2022.
then the uplift in production running costs should come through in that $1.094m figure.
Even if it were to double (which can't happen because economies of scale will prevent that + the BRL/AUD is 10% weaker YTD) then cash outflows would still 'only' be around $5.55m in 2022.
7/
If the 15% price rise rings true then at YTD cash receipts of $9.75m HMI should already be positive to the tune of AUD $4.2m with H2 still to come.
Based on the H1 2022 AUD/GBP exchange rate that would be c. £2.32m.
If the 15% price rise rings true then at YTD cash receipts of $9.75m HMI should already be positive to the tune of AUD $4.2m with H2 still to come.
Based on the H1 2022 AUD/GBP exchange rate that would be c. £2.32m.
https://twitter.com/BigBiteNow/status/1544259633669439489?s=20&t=ZV87X0NUEqqbSecahAgavw
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