Royal Viking
What are you talking about, mining in Africa?
From the latest released activities report:
"
The new board will focus on progressing exploration activities at the Company's Hamersley Iron Project in Western Australia and Bloom Lake Cobalt Project in Canada and continue to explore opportunities for the company to be re-quoted on the ASX."I didn't see any mention of "mining in Africa"
Talking walls?
Some points to ponder:
(1) The Audited Annual Report (year ending 30th June 2019) is now 7 months overdue and IMO with all the added information (subsequent to period end) that was presented in the 1/2 yearly accounts, (and with the lack of anything significant reported since the last entry in the 1/2 yearly accounts) the Annual Report should have been released a long time ago, I do assume that as these are audited, it might take some extra time,
(2) Still no announcement to hold the AGM, which is now 5 months overdue.
(3) IMO, the lack of (1) & (2) is why WFE have not been re-listed on the ASX is on the basis of: prior to the attempted DRC acquisitions, the company's Hamersley & Bloom Lake were their only projects, to that end that hasn't actually changed, thus the "significant change and scale" of the company's operation is status quo prior to the DRC attempt, making the need to comply with Chapters 1 & 2 void?
(4) If the company already had a loan facility ($250,000) why did they have the need to take an immediate loan for $80,000? as per the quarterly cash flow report, they still have $250,000 available. Why didn't they just utilise that instead of taking out an extra loan?
(5) The conflicting cash/loan/corporate and staff costs for the quarter (and the 1/2 yearly) plus the discrepancies in the cumulative (ytd) totals across multiple announcements is somewhat baffling, just one example: admin and corporate cost was $48,000 (Sept 19) there was a positive of $5,000 in the (Dec 19) but the ytd (cumulative) showed $58,000? by my simple understanding of arithmetic
$-48,000 -
$+5,000 =
$-43,000. Giving the benefit of the doubt that the positive $5,000 attributed to admin and corporate should have been shown in brackets as a negative, the ytd should have been $53,000. But staying with the $58,000 and the ytd spend on admin and corporate, the March quarter spend was $83,000, the ytd should be showing
$-58,000 +
$-83,000 =
$-141,000 but it is reported as
$-126,000 @TheCount beat me to it, there was some ?'s in a previous post where I attempted to decipher the (IMO) irregularities driven by all the "subsequent to period ending" information included in the 1/2 year report to end Dec 2018: post
44021889 re: "
How does a company go from a drawdown of $20k to $830k without it being reported in ANY cash flow statement?"
There are footnotes on pages 22 & 23 of the 1/2 yearly report (31st Dec 2018), the more you get pointed to anything "financials" WFE, the more difficult it is to decipher, confusion reigns supreme. IMO, the draw down figure is incorrect, the confusion could be attributed to when WFE entered into the $750,000.00 loan, from what has been announced it was 18th October 2018, making it incorrect to be reported in this year to date figure, as this amount was utilised in the 2nd payment to AHIC (re: footnotes)
I also agree that the financials are very confusing, appeared to be rushed as there is inconsistencies throughout.
(6) The was no announcement to the market that the company entered into a $750,000 loan arranged by Sixty Two Capital, or it wasn't captured in cash flow reports.
(7) Currently, with an estimated $1.36M (principle, fees and interest) of loans being accrued, and the $230,000 currently owing to directors, the company has (estimated) $1.59m of debt, with critical spend requirements (minimum to satisfy mining authorities and agreements) both Bloom Lake and Hamersley will need cash on top of what would be needed to actually progress the projects, but the company is suggestive that they are looking to explore opportunities - just have to roll eyes at this......
(8) With the "new" reporting in the Quarterly Cash Flow report, whereas the estimated Cash Outflows has been replaced with "Estimated Quarters of funding available" (makes the $250k drawdown good timing) WFE have indicated 3.3 quarters, with $294,000 of funds available, it is approximately a spend of $100,000 per quarter.
Setting aside funds (or needing funds) for the current projects Hamersley minimum spend to satisfy the Western Australian Mining Department was circa $100,000 last year, Bloom Lake - unknown. A capital raise or back to the "saviours" will be desperately needed, IMO before being re-listed.
JoshuaL, why would WFE need anyone to assist them with capital raising when they have at hand Sixty Two Capital, used previously in the past, or 1620 Capital, GTT Ventures, SanLan Private Wealth, Okewood, First Investments, the list is long from the plethora of lead managers available in Western Australia.
I would estimate that a credit raise of circa $3M, would be needed to (a) extinguish these costly loans (b) pay directors (c) actual funds to be re - listed to provide evidence of being an on going concern (d) satisfy mining regulators (e) capital to progress projects (f) to review any potential opportunities.
Yes indeed "Count" when the financial report finally gets here, it will be an interesting read......
cheers
