half yearly... watso confused, page-3

page 13 of the half yearly indicate that a total of $627,000 of debt was converted to equity. this debt for equity, would simply have had to come from the placements, which were made in the half year. there are some confusing aspects about this - but some of the debt was related to monies owing to directors, - yet, watso cannot see any relevant change in director notices in relation to the satisfaction of this debt (ie the issue of shares)

just to clarify the situation a bit , but in the annual report (for the period ending dec 31) and in note 15 to the accounts, the amount of related party (ie director), interest bearing, loans was $155,000 (out of interest bearing liabilities of $395,637). in the half yearly, a statement is made "during the current period, interest bearing liabilities of $525,632 and payables of $101,645 were converted into issued capital". note 14 of the annual report, reveal that $91,627 was also owed to directors as "accounts payable". note 20 to the annual report gives a breakdown of these loans.

if the company makes a statement like "during the current period, interest bearing liabilities of $525,632 and payables of $101,645 were converted into issued capital." - then that simply has to include debt owing to directors... yet, there is no relevant section 3y report

watso is more than happy to be corrected, but from what he can see, there is something a bit sus somewhere

for what it is worth, but a the drilling program that the company is undertaking, will cost about $400,000 (drilling, assaying, onsite geologist, field hand, accommodation etc etc

makattack made the following comment in a recent post

"They are incorrect because you're assuming they will spend $600K+ this quarter,"

which was in response to watso's claim that the budgeted exploration figures are very rubbery. watso's estimate of $600,000 seems to be quite good - ok - a bit depends on when the account will actually be paid - but the drilling program will cost $400,000 - then toss in the extra office costs, which are charged to exploration .

this is not a bad set up. directors collect director fees etc , and then the company also pays the westralian group (owned by a director), for office expenses (which amount to about $300,000 per year).

frankly, this outfit could be run from a home office. a geologist, with some accounting knowledge, could run the whole lot