Cline Mining Corporation T.CMK

Cash Position

[ResourceMiner]

When the financials come out, be sure to take a look at the accounts payable when evaluating the company's cash position. My guess, yes a guess, is that Cline has begun dragging out paying the payables to perserve cash for reporting purposes.

[ark88]

At this level, the market will be eyeing only the cash position when the financials are released. It's hard to determine the impact on the SP, but I would think anything less than 20 mil, there would be selling pressure. GLTA

[mr1derful]

It's hard to tell what the cash position will be as the company could have deferred some or all of the $16 million of capital expenditures for 2012. Also, I don't know what their monthly operating costs are when they are not producing any coal. ResourceMiner made a very valid point that CMK's accounts payable may have increased as a way to temporarily make cash balances look better. I&

[GUNSS]

I think that a cash balance of $15-$20 is expected, so I wouldn't assume that anything under $20 million is a bad #.  Personally, I want AT LEAST 6 months of cash liquidity, call it $15 million with a projected cash burn of $2.0 million per month. 

[ResourceMiner]

Someone correct me if I am wrong, but I think Cline is on the hook for all wages of laid off workers for the next 60 days. If so, I can't see a burn rate as low as $2MM.  Even without the laid off worker compensation, I think the care and maintenance of the mine, legal, accounting, overhead, etc. will be much more than $2MM per month. 

[hoagy16]

Agreed.The interest alone is almost 25% of the $2m.