maximus selling gold at au$1900 an ounce, page-47

i dont know if any of you have ever studied accounting but here are some basics for you.

revenue - expenses = profit

i couldnt careless about what price they are getting for the gold, im more interested in the cost of production.

so focus on the gold price and how many nuggets they find and how much gold they sell to the mint but what about the cost of producing that gold?

$450k of the $1m in admin expenses is just for two employees of MXR, so i cant see how they are going to cut down the admin expenses that much if they have all these hangers on unless they take a pay cut.

so they probably need much more than the $1.6m they have now to get any meaning level of production, if they dont have the cash for the capital costs it will never produce a significant level of gold.

these guys only have $1.6m in cash, lets say they cut expenses 30% so they only spend $700k on admin, how much do they need for capital expenses? lets say $500k to go past pilot production. If your idea of a good investment is only having $200k for liquidty thats crazy.

focus on the profitablity of the gold production not just the fact it can produce because why produce something if you lose money? they might have all of these different resources etc but with out the cash for development they are only worth what someone will pay, at present thats around $0.041 per share.

im not being alarmist, im stating simple logic.

companies like this shouldnt be listed on the ASX, they are a waste of resources and space. FMS should just do the right thing and take it over.

as for people like sentia etc, i cant understand why only look at the positives, this company doent have the resources to do anything. it will need more capital by mid next year and if the markets get worse or stay the same they will have much more trouble raising funds.

the writing is on the wall.