Cash positive - consider the source The Company anticipates operating cash flow positive to occur during the month of February 2013.
Why did MTO not declare cash positive at 3017 oz production in February? Ron takes every opportunity to exaggerate any small success and downplays, hides or outright deceives when it comes to any possible negatives. There is a reason, it's because they were not cash positive even at 3000 oz (a number which may have been manipulated, it would help explain the huge plunge in production last month)
Recent comments about depleted stopes in February reported after a news release in March stating new stopes had been opened? A lack of opening new stopes until May 10 (which in MTO speak means July)
The last working stope on level 12 has been completely mined out in February prior to the next stope being ready to mine...As of today, there were only 40 meters of development to complete before reaching the mineralized zones of level 14. We expect to reach the zones by May 10th.
Shareholders can look forward to more of less if the past is any indication of future.
The estimate for cash positive was 2700 oz when gold was almost $150 higher than spot today which means they may need 3000+ just to acheive cash positive. Using the actual grade reported even if MTO was acheiving its production target of 2/3 capacity they would not make 3000 oz. which is just over 1/2 the stated target of 60 000oz per annum they have published for several years.
Does anyone remember the last time Ron said MTO was cash positive?
I guess what Mr. Perry said so many months ago is true. MTO is cash positive, not from gold but from extended loans and PP's. Didn't see this one coming as they have said they had enough cash so many times I can't count.
Read more at https://www.stockhouse.com/bullboards/messagedetail.aspx?s=MTO&t=LIST&m=30960220&l=0&pd=0&r=0#QJgAKXxCXgiPjTGT.99
Looks like my estimate for actual 2013 production from this time last year may have been overly optomistic (unfortunately - as it was based on a worst case of 2/3 of projected)
There are more missed targets than oz in the ground, this last >6g/t bulk sample shows just how badly the truth has been stretched. @ 2/3 mill capacity (Still not operating?) 6g/t x 800t is only 4800g per day. At 150oz x 365 days you only get 54 750 oz/year and nobody (epecially these clowns) operate 24/7/365. That's 10% less than what was promised three years ago. Considering the considerable downside results and continued "over estimation" of news releases 40 000oz is more realistic. That pretty much puts the share price at sub .20 for the next 3 years. Good luck - but math is not on your side.
Vote at the AGM if you want a chance to get your money back.
Read more at https://www.stockhouse.com/bullboards/messagedetail.aspx?s=MTO&t=LIST&m=31301790&l=0&pd=0&r=0#BhQ3AqEpIezWveXt.99
As the debit burden has grown, timeline has been extended, production numbers dropping like a stone and significantly lower grade we can see that SP really is an accurate indicator of value.
I feel for the longs but say the same as before, this company is in a cash nose dive.
You have to decide - buckle up or get off.
