From the 2019 annual report:The financial statements have been...

From the 2019 annual report:

The financial statements have been prepared on a going concern basis, which contemplates continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business. During 2019, the Group incurred a loss of $5.6 million, and after transferring lapsed options from the share based payments reserve, this brought accumulated losses to $180.9 million. As at 31 December 2019 the Group’s current assets exceeded its current liabilities by $2.91 million, however the Group had negative cash operating and investing cashflows of $4.48 million. The Group had net assets of $50.5 million.

The financial report has been prepared on a going concern basis on the expectation that the Group can raise additional debt or equity as required. The Directors are aware that additional debtor equity will be required within 12 months, in order to continue as a going concern. The Group’s ability to raise equity will rely on investor confidence in the development or sale of the Bird-in -Hand Gold Project or investment in the Tala Hamza Zinc Project or other assets.

TZN in an Asipac squirrel grip with $20m+ owed, plus ~$2.5m accrued interest on borrowings. Excluding the restricted cash on deposit of $5.3m from current assets, TZN had net working capital of circa -$2.5m.

Given the heavily discounted rights issue last year, the company will surely want to have the mining lease approval through and a meaningful lift in market cap before hitting up shareholders or other punters with another cap raise.

Two interesting and material medium/long-term projects, but a short-term cash squeeze.

Time pressure building.