Hi taboon, Because IMO iron ore is going nowhere in 2015, due to...

Hi taboon,

Because IMO iron ore is going nowhere in 2015, due to further supply coming online from the majors and general negative sentiment. I have then drawn the conclusion that EQX's SP is going to stagnate as well.

With this in mind, I believe my money is better served elsewhere for the time being. That doesn't mean I don't think the company would be a good stock to get back into in 12-24 months time. It's a fairly simple concept really, hopefully you can get your head around it.

You talked about IO companies 'going to the wall' taboon. The IO companies most in danger of folding are those with high cash burns relative to cash on hand, as these companies will not be able to ride out this IO shake out.

As you have seen with SDL taboon, when cash runs low, the company has to dilute itself to stay afloat. There may come a time where no one is willing to tip further money in to keep the company afloat, or the dilution may even be more significant if money needs to be raised while the company is trading as a penny stock.

EQX has $40m cash on hand and can reduce it's cash burn to $500k a quarter. Do the maths taboon, EQX is not 'going to the wall' in the next 12-24 months. By what logic or reasoning is EQX in any danger of folding?

Good luck!