Tinnitus, the whole financing issue remains unresolved. Short...

Tinnitus, the whole financing issue remains unresolved. Short term as well as longer term. While this situation remains I expect all share price improvements to be temporary in nature.

Obviously 7.5c wasn't considered "cheap" by the vast majority of CNQ shareholders. Just as you do, I expect more shares to be issued at a lower price should MCU continue to watch. Those who participated in the SPP would be left holding the bag.

The BFS calls for capital expenditures of 55M. This, of course, is in addition to ordinary expenses for running the company. Improvements to the still severely underperforming tailings plant don't come for free either.

In the most recent presentation CNQ stated they were "currently producing approximately 1,500 MTU per month". First of all "approximately" means LESS THAN 1,500 MTU per month since otherwise they would have worded it differently. Secondly, note the word "currently". IMO this 1,500 figure is being attained in a perfect environment only (no power outages, enough process water, no equipment breakdowns, etc.) So throughput could be lower again for whatever reason in a NY minute. As it was the case during all 10 months leading to February 2013. Assuming they were producing 1,500 MTU per month on a continued basis this would generate revenues of approximately 1.2M per quarter at current tungsten prices ($US350/MTU APT). That may be enough to cover production costs but not enough to do anything beyond that worth mentioning. Let's hope they can improve the plant further and achieve better throughput with very limited additional capital expenditures. BTW, the first quarter chash flow report will shed some light on what that 1,500 MTU/month figure is really worth. In fact I expect Miss Carbine's revenues to be well below 1.2M, probably below 1.0M. Why? Because the "approaching designed throughput capacity" crew always comes in short of expectations.

Revenues to some extent depend on timing of deliveries (bill of lading shortly before or after the end of a quarter) so in order to look at meaningful numbers we will have to smooth them out over longer periods. Q1 revenues will provide an important hint nonetheless.

Given the huge cost increases all over the mining industry and CNQ's inability to meet their own projections in particular, I expect AT LEAST $60-70M in expenses for the hard rock project that will have to be financed one way or the other. MCU is talking about 15M in their MoU so obviously a HUUUGE question mark remains. Taking a step back and looking at the whole situation I think a good time to get back in would be the last cash raising before production from hard rock commences which according to their own schedule is going to happen around Sept. of 2014 (start of stockpile operation). IMO it's going to be later than that since Miss Carbine never meets schedules.

Short term the situation is this: Cash at eoq4 was 1M. Fitzroy delivers 338k, Gossan 200k (if consummated during Q1), the SPP 340k. If all other business was cash flow neutral (unlikely best case scenario) CNQ would have 1.9M in cash at the end of the first quarter *** IF *** no other significant capital expenditures had been incurred. A figure of 1.0M - 1.5M would be much more realistic IMO. This of course is totally insufficient to finance the procurement which is about to start in April. So something needs to happen very soon. Either MCU will have to put up or some other solution will have to be found. This - until resolved - will keep the pressure on the share price high.