Did They Overlook Something By Mistake? The following was stated on Page 7 of the company's MM&A for the three month period ended February 28, 2013:
During the quarter ended February 28, 2013, the Company settled the delivery requirement of 4,455 ounces of gold and 31,400 ounces of silver to Deutsche Bank, in accordance with the terms of the Forward Gold and Silver Purchase Agreements signed during fiscal years 2011 and 2012, respectively. The Company has an obligation to deliver 36,090 ounces of gold and 408,000 ounces of silver in future periods (see Note 15 to the unaudited condensed interim consolidated financial statements for the nine months ended February 28, 2013).
I could not find any mention of failure to meet the terms of the forward gold purchase agreement in the unaudited interim financial statements for the three month period ended February 28, 2013. I might have missed it, I would appreciate it if someone would point out where the company disclosed that they had any kind of problem in meeting the terms of forward gold purchase agreement in the February 28, 2013 interim financial statements.
The following is found on Page 7 of the audited financial statements for the fiscal year ended June 30, 2013;
The Company is in default of its Forward Gold Purchase Agreement (Note 17) as the Company failed to meet its delivery requirements for December 2012 and June 2013.
Now I really, really, really would appreciate that someone point out to me where I missed this in the company's quarterly MM&As and Financial Statements for the period of December 1, 2013 to February 28, 2013 because I hate to think that our management overlooked something important as this by mistake.
Also, I find it hard to understand how the working capital deficit can go from $27.7 million as listed in the Company's MM&As for the period ended February 28, 2013 to $85.6 million just four months later. That's a combination of loss of cash or increase in current liabilites of $12 million per month. How do you manage that when your market cap is $70 million? Unbelievable but true.