On basis NMR spent over $4m on exploration in FY08, with only...

On basis NMR spent over $4m on exploration in FY08, with only $2.5m in the bank, the auditors inserted an inherent uncertainty as to whether NMR can continue as a going concern over next 12 months. Whilst it is not unusual for an explorer to be issued this audit opinion, funding is obviuously more difficult given the current world conditions.

Importantly, I read the following commentary in the report.

The Directors are advanced in their discussions and negotiations with existing and potential investors with respect to securing sufficient funds for its existing exploration activities and the future development of the company's projects.

Accordingly, the Directors have prepared the financial report on a going concern basis. As such, the financial statements do not incude any adjustments as to the recoverability and classification of recorded asset amounts or to the amounts and classification of liabilities that might be necessary should the entity not continue as a going concern.

I believe the Lina Priva target has the potential the potential to be a world class operation...its just going to take time. All explorers simlpy need to be able to hang on in the current climate because given the difficulty in going to the market for cash or to the banks, bargaining power of explorers moves to an all time low in these times.
Hopefully management can secure a strategic investor at an appropriate price as the potential of the project is clearly large....interesting to see what sort of hits they have had on the drilling recently....that could really change the bargaining power either upward or downward