Quoted from the report:
"As at the date of this report, the Directors believe that the Group has adequate resources to continue to explore, evaluate and develop the Group’s area of interest and will ensure the Company has sufficient funds to meet its obligations. Subject to market conditions the Directors believe there are reasonable grounds to conclude that the Company will be able to raise funds by way of equity, debt financing or sale of assets to fund anticipated activities and meet financial obligations. For the reasons outlined above, the Board has prepared the financial report on a going concern basis."
I've held this for a long time and have a less than zero holding cost, but reading this report makes me feel a little queasy about the value of my remaining shares. I've blithely assumed that something, either zinc of gold, will come good in the not too far distant future, but year after year they continue chewing cash and nothing ever comes back. The statement above is unbelievably vague about how much they need to get at least one of their projects generating cash, and about timing. Indeed it is all beginning to sound like blind optimism.
I think they need to make a more detailed statement about their projected cash needs and projected cash inflows fairly soon or it will all end in tears. A high zinc price and hefty gold reserve won't help if they don't have enough cash to get it out of the ground.
TZN Price at posting:
10.5¢ Sentiment: Hold Disclosure: Held
