I find it difficult to see where this is "approaching designed throughput" of 13 containers per quarter.
The information in the quarterly report further reveals that throughput during the most recent shipment period has dropped to 12%, down from 19% in the preceding shipment period.
It took them 56 days to get the 8th container out of the door. That's 56 days to produce roughly 1100 MTU at a rate of 19,6 MTU/day = 590 MTU/month.
Didn't they tell us they were producing at a rate of 1500 MTU/month?
The cashflow report once again did show a significant overdraft of 40% in development expenses ($1,121,000 vs. $800,000 as projected in the 1st quarter report).
Cash flows from tungsten sales, interest and sundry income amounted to $433,000, operating cash outflows to $1,223,000. 15 months after production start the operation appears far from breaking even.
Cash at the end of the quarter was $1,464,000. This includes an advance payment of $414,000 that will reduce cash flow from concentrate sales in the third quarter by the same amount. Given the company's current burn rate I expect them to raise cash one way or the other towards year end just to keep going. Any equity portion for the hard rock financing will have to be raised additionally.
CNQ Price at posting:
5.5¢ Sentiment: Sell Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)