Hey Rob, I think we have read the report differently. My understanding of the report shows a loss of 101K for the year. Also worryingly despite the new acquisitions a reduction in operating revenue from 329K to 234K.
I agree there is some promise regarding the gold deposits but these resources need to be proven with further drilling which wont happen in the short term.
The BME technology is in my view the only short term prospect for the company. An area that I don't have much knowledge to tell you the truth.
As far as CLTNet is concerned I suspect this is where the main hit in terms of revenue was felt. The market for online driving tests in a country the size of NZ doesn't particularly excite me.
As for Valleyarm, it seems like an interesting area. The fact that Musicadium (now a part of Valleyarm) operated for so many years (from Dec 2007 to July this year when joined with Valleryarm) with this model (100% artist royalty) would suggest there is money to be made. But it isn't a unique service, nor the cheapest with Tunecore Digital Music distribution offering a similar service for less.
The company reports to have $651K approx I think it was in cash on hand. The August 4 response to an ASX query about the companies ongoing ability to operate with current negative cash flow. The negative cash flow for the quarter was ($419K), the company indicated there would be a similar negative cash flow for this quarter.
My thought is while a positive announcement may see a little percentage increase in SP, potential investors should do some research in terms of the companies continued ability to operate without some form of capital raising. At the current SP I would suggest it's not really a viable option.
My views only and just a little research. Hope to see the SP go green, as I bought in when this was sitting a bit higher than it is today.
DYOR and good luck to all.
JB
PS Rob, I don't work with you do I? There is a Rob Haywood in my office in Cheltenham.
TNC Price at posting:
0.2¢ Sentiment: Hold Disclosure: Held
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