AT 30 Sep the company had $3.87million. Based on the 30 June Creditors and the work they performed between 30 June and 30 Sep you would expect a fair chunk to still be on the creditors list at 30 Sep.
So they state at the AGM that they have $3.5million in cash.
So that is a total cash burn of only $370 thousand dollars in two months.
So my question still remains - what is the creditors balance. Forgive me for being absolutely synical here but the creditors balance at June 30 almost accounted for the cash burn in the first quarter, which means how did they pay for the activity in the first quarter. The cash burn since 30 Sep would barely cover standard overheads, so what is the real financial situation of the company.
They have 196,737,235 shares on issue Current Share price 15 cents So Market Cap of $30million Net Assets - Could be bugger all
So if they need to raise another $10million to $20million, which would have to be at a discount that would mean another 100 million to 300 million shares dependant on price. This would provide a cash backing of roughly between 3cent and 5cents per share. SCARY if they find nothing.
I would suggest if the ASX have held up the prospectus that the disclosure section would have been pretty ordinary or that the resource was well short of JORC compliance and that hence the Prospectus will be far less Rosey than first indicated. So I dare say the value of the Uranium Asset will also have taken a smashing in the last few months.
So the question is - at the current price does this sound like a good investment.
Disclosure:- due to the lack of information on the current financial position of the Company, the lack of information surrounding the iminent Uranium IPO, the lack of information of the forecast capital requirements and other information I can not possibly be regarded as a valid analyser of this garbage - so do your own research. IMO only
GDN Price at posting:
0.0¢ Sentiment: None Disclosure: Held
