Cline Mining Corporation T.CMK

Poor Earnings Release

[mr1derful]

A lot of rhetoric and fluff in the earnings release but here are the key facts. Cash as at August 31, 2012 was $7.6 million and as of Oct 15, 2012 the cash position is $5.8 million. The company is depleting its cash at significant rate and I question whether the company will  have enough cash to make the next interest payment of $2.5 million due in Feb 2013.

Here's what management had to say. "In addition to its working capital requirements, the Company must secure sufficient funding to continue developing and expanding the New Elk Mine and keep its mineral claims and title in good standing. The Company is currently working on securing additional capital to meet these needs and several initiatives are underway in this regard. There is however no guarantee that the Company's financing efforts will be successful or sufficient to fund existing commitments."

Good luck raising additional capital on reasonable terms. This company is in big trouble.

[straightbull]

Nesxt stop $0.15 a share. 

[aatwal]

Burning through cash very quickly......Bates and company need to except any reasonable offer to sell the whole company or the New Elk Mine asap.....OR do a JV.....they can NO LONGER do it alone...time is running out quicker than first thought!    Would not be surprised to see .10 as more people exit the stock!

[CoalRookie]

At the rate of $900,000 per month, by February they would have $2,200,000 left. Not enough for the interest payment. The sale of the 70,000 tons of coal will be key, as I'm sure everyone here already knows. Corsa has sold their coal for $153/T recently If I am not mistaken.