tungsten first 20 ton cash flow fucture growth, page-3

Sorry guys, but your optimism appears a bit undue to me. As you might have noticed, the latest press release indicated certain problems with the plant preventing it from ramping up production as planned. Depending on whether or not the team can fix these problems quickly, we could be in for a very unpleasant surprise, i.e. deferral of bulk shipment, deferred signing of contracts, deferred revenues, and even higher start-up costs. I don't see where this could indicate the company was becoming cash flow positive in the near term.

The timing of the Gossan IPO is a bit unfortunate. The current environment comprised of Chinese growth moderating, European problems taking center stage again, and lowest gold prices in months isn't exactly helpful making this IPO a success.

Tungsten prices slumped 10% about a month ago and haven't recovered since then. European APT hovers around $390 which isn't bad but 10% below what we were used to during the first quarter of 2012 and 20% below prices we enjoyed a year ago.

The share price took a beating and came back almost 30% from its most recent high. May I remind you of the fact that when III was raising cash last summer the plant was intended to be in production before the end of the year (2011). Now we're approaching the end of May 2012 and still we haven't sold anything. Instead we're being told that ramping up production could take even longer yet again.

Bottom line: There isn't much to enjoy right now.