Phill mate I seem to be seeing different figures to you
cash on hand at 31 March according to quarterly was around $8million
the cash burn was $3million for the quarter
the current liabilities at 31 Dec 2007 were around $6million
So assume cash burn $2million for this quarter leaves $6million cash less a few million liabilities we are getting down to the danger zone for an operating mine, which is where net current liquid assets fall below 6 month cash burn assuming a worst case scenario, which is how a prudent financial controller would see things
Consequently a capital raising of 3 to 4 million is required soon
Currently stocks like MMN need to discount 30% to raise cash which mean the raising is done at around 6 to 7 c which of course as we have all seen with other stocks recently sends the stock down to the price of the raising. They are already fully drawn on the CN facility and owe NAB some money. Hope the mine wasn't used as securoity for any of this stuff.
thus the vicious spiral down unfolds
As I have mentioned before, head south from Texas across the border to Emmaville where SVL have hit a bonanza lode around 50 metres long, upto 3 metres wide and grading 1500gpt silver plus base metal credits Market cap 4 Million, cash 3 million, no debt and only 40 million shares on issue, nice and tight unlike the bloated register of MMN
Do your homework you can see a 5 million ounce silver resource at this prospect with multiple bonanza lode upside resource cost 20c an ounce, thats cheap!
The JORC comes out in a couple of weeks. The ore is so rich they can dig it out the first 25,000 tonnes truck it to Broken Hill for milling and still make $10 million cash profit. Its all in the grade and in precious metals mining unless you hit that bonanza lode its always tough going.
Thats why I am accumulating SVL and leaving MMN until they prove they can produce silver at a profit
NGG looks good, better to buy that direct than MMN
MMN
macmin silver ltd
