It looks much better than I expected with net outlays of only $2.144m this quarter as a result of refund ($1.33m) of exploration activity costs by Ample Rise.
Cash balance of $12.673m should see this company through to at least the early part of 2012. Looks like NG has been keeping his promise to ensure that they minimise outlays. It seems unlikely they will need another capital injection so long as the organic growth story is maintained. I doubt NG want to have his holding diluted any more.
With some cashflow now starting to come in from the current operations they should have enough cash to last them longer than what I suggested in my first paragraph (assuming no major capital outlays to come).
I feel a bit better, but we are not out of the woods until the company actually becomes cashflow positive.
Share price has been stuffed very badly. MCO is not the only goldie to have borne the brunt of increasing aversion to risk. I am not sure when it will recover. Perhaps not before ore is again coming up and we are in the second half of 2011 with a positive cashflow.
Still holding my parcel of MCO shares. Will buy some more at some stage if it remains cheap and I feel better about things.
Gee it can be hard being in goldies.
loki (watching with interest my diminishing portfolio)
Add to My Watchlist
What is My Watchlist?
