the cash postition is worse than some people realize.the...

the cash postition is worse than some people realize.

the quarterly cash statement, does not give an indication of liabilities, as all the cash statement gives, is a flow of cash - ie actual cash which has gone into the bank account, and cash which has gone out

a look at the balance sheet gives some information though, and from this, it can be ascertained, that at dec 3, the company was virtually insolvent and down to its very last cents (indeed, had more in the way of liabilities, than assets - can ignore ¨non current assets¨, as there is no real value there)

as far as the present cash position is concerned, and after taking into account the äccount the ¨accounts payable¨, then the starting point for the company is $1.9m. watso would suggest that after allowing for the general costs of running the company, and the costs of the drilling and the payment for the mmi sampling, then the real cash position is down to about $1.2m. (after taking into account the ¨accounts payable¨). This position is a bit different to that portrayed by fs in his post, where he writes

¨The cash position is at the end of the calendar year and since then the successful rights issue has added to the cash position, page 16 shows that "after balance date events" an additional $1,930,598( before issue costs). In addition to this , the conversion of options would add further funds. As a small explorer, these funds represent a strong financial position¨

fs probably forgot to take into account the liabilities


with an estimated present net current asset position of about $1.2m, the company is on track for a caital raising by about september

the market certainly seems underwhelmed by the 45 pages of ¨fantastic news¨