Petaquilla Minerals Ltd PTQMF

How Close?

[wwadehammer]

The company missed payments to Deutch Bank in December 2012, June 2013 and September 2013.  Now it starts to make sense why the audit report was delayed a month.  The auditor's probably needed to sort out what was going on.  The company states that they have now paid off the bank for December 2012 and June 2013 (around $3 million in cash) and are trying to arrange financing for the September 2013 payment.  Looking at the financial statements, you see that the Company obtained a $6.5 million loan at 6.75% interest from Deutch Bank payable in 2015 back by future production.  They got the loan In March 2013 after they had failed to meet the gold delivery requirements in December 2012.  Seems like these guys at Deutch Bank are really nice guys when you realize that the Bank could have forced us into possible Bankruptcy but instead actully loaned us more money at reasonable rates.  Could it be that the Bank didn't relish the idea of fighting for its money in Panama where the company has great support from the courts and executive branch?  Well, at least the Bank thinks it has a better chance of getting its money back by not pushing things so that's something for us. But, how close is the Company to bankrupcy?  The auditor's just raised the issue that we might not be a going concern listing the $85 million of negative working capital as the reason.  Gee whiz, those auditors are a pesky bunch, huh.  It's clear now that the Company has been in big Financial trouble since last November and have been trying to walk a tightrope between paying bills and moving forward in Spain and Panama.  They sure appear to have bitten off more than they can chew.  Of course no one was predicting a 30 percent correction in gold.  Bad luck for everyone.