delisting ?, page-19

Hi Szab,

The revenue is there, it's spending that's been the problem.

In the full year statutory report I'm going to cherry pick 5 items worth a look.

(1) $18,309,000 for the costs of setting up finance.
(2) $15,605,000 for exploratory drilling at Teresa.
(3) $9,692,000 for port access (Teresa).
(4) $9,790,586 to pay out the Fortress Warrant (which should have been a buy-back, but that's another story)
(5) $50,208,000 for Umiat (which can't be discounted by the $26.5m Alaskan rebate (which was on sold at a discount) because it's already applied against costs in this quarter)

With the exception of Umiat these should all be segregated costs as they're not "normal", in that they "shouldn't" be reoccurring (although PB is an entrepreneur, not a manager – so anything can happen).

Collectively these total $103,685,586 - or $25,921,000 per quarter. And that makes a big dint the Company’s ability to become cash positive. However four of the five are behind us now and Umiat – being the exception – should be viewed in light of this, “[SB21]… has increased the percentage of qualifying expenditure rebate from 45% in 2013 to up to a 75% rebate in 2014” – so Umiat should cost us less this year than last.

The point is that the revenue IS there, the Company just needs to stop over spending on non-core commitments and we’ll be right!

Al's been on about this for a while.