Income statements for exploration companies are largely irrelevent. Their revenue from sale of ore is recorded but most of their costs are capitalised and expensed over the life of the mine.
Page 6 of the report states that "Over the year the average grade of stoping ore combined with lower grade development ore was 4.4 grams per tone for 14,409 ounces of the 15,888 ounces produced"
This indicates most of the associated costs would have been capitalised. Similarly 14m of development costs in cash flow statement investing activities would have been capitalised. Once you adjust these accounting issues CTO are a long way from breaking even economically.
This company has continued to over promise under-deliver. I remember seeing the gold production report back around 2001-2002 which stated that they planned to be producing 250k oz per annum by 2005.... 2010 and they have nothing to show for it.
Current market cap is only 120m and yet they need 110m (probably under-estimated) more to develop just the imperial and city mine (40m imperial page 7, and 70m city page 7). Why would anyone go into a JV with CTO when they can just buy the useless company assuming there is actually any gold at the site.
On another note have any of you seen a more uselss graph than what they show on page 4....
CTO Price at posting:
12.0¢ Sentiment: None Disclosure: Not Held
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