Just for the record, it now looks like you were on the money about MCO running low of cash due to delays in getting into production.
Based on their estimate of cash required for the December quarter (that was in the September quarterly released in late October) they needed about $1.1m of cash for operations and had over $3m so I did not see a delay of a couple of months being that crucial.
But clearly in hindsight that $1.1m was way too low an estimate and they needed all their cash on hand and a bit more to make it through the quarter. They now have a good cash buffer so if there were any cash crisis it appears to have passed.
The other point is it seems most likely there have been problems developing the mine and plant as they have spent in excess of $1.3m extra on development that they did not know they would have to spend in late October. The only extra thing I have heard about recently was the new winch but surely there must be other items as well (?).
Final point is production has obviously begun later than expected as they spent ZERO on production up to 31 December when they had estimated a cash outflow of $100k up to the end of December on production. Don't know how Nick baby can tell the market that production began in mid-December when they spent ZERO on production up to the end of December (?).
MCO Price at posting:
44.5¢ Sentiment: Hold Disclosure: Held
