They have been increasing sales - but total revenue is still only covering 20% of expenses - and the profit margins are low so the issue of profits versus expenses is even worse. Revenue (and more importantly, profits) would need to increase 10 fold over the next year - I can't see from what direction that would come from.
They definitely have cash flow issues - not enough to carry them through the next 12 months. Given the inflows of cash over the last 5 years (They had $20mil back then and no debts) they should be in a far better position.
The BOD is also not necessarily the most reliable or that competent - nor honest.
Some companies become less of an investment and more of a gambling punt and should be avoided even exiting at a loss. Plenty of better opportunities out there on the ASX.
MXC Price at posting:
2.3¢ Sentiment: None Disclosure: Not Held
