Started the quarter with $5.3m. Ended with $1.3m. Would've been only $1m left in the kitty but $300k of investments sold.
Not much of the $6.6m raised in Sept left.
Probably close to $15m raised over the last couple of years. Red October was supposed to make money for the company but has been a drain.
The new plan sounds ok but the company will need quite a bit of time and funds to get enough resources and eventually reserves to justify a stand alone plant imo.
Judging by some other explorers, by increasing the jorc ounces, at least MAT sp should now rise to reflect the increased value. Wasn't happening recently as there was always the uncertainty of the cost of mining/development of Red October.
The cash burn was way too high and potential investors could only see more cash injections coming, which in turn weakened the sp, which then makes the next capital raising look even more dilutive. Each feeds off the other, especially when the company chooses not to update the market. This creates an ideal opportunity for the sp to be slowly taken lower by those who wish to benefit from an upcoming equity raising.
At least now the market can see an outline of a plan going forward. The downside is the limited cash on hand which will soon need to be increased again. The Sept quarterly was a shocker and it could be argued that mining should've been wound up prior to using most of the $6.6m capital raising.
Let's see what comes from the trading halt. It looks like some sort of deal with AOP regarding Lake Rebecca
MAT Price at posting:
10.5¢ Sentiment: None Disclosure: Held
