ESM cash burn Procuda, we all know that you are fixated on the manipulation of this stock using Coinman's data and you have a valid concern. But this manipulation will not force the company into bankruptcy. Excessive cash burn might.
Do you remember Carpathian Gold and the Riacho dos Machados gold mine? If not, look it up. Poor management and excessive cash burn in Brazil forced the company into insolvency that resulted in it being taken over by ESM in 2016, at $0.07 a share or $1.27 after consolidation. A share is currently worth $0.31 having lost 80% in value.
Since that time, Scott Moore being CEO and President of ESM, has burned through roughly $50 million of private placement cash diluting shareholders 315% to a total capitalization of 169 million shares outstanding. All this cash burn has paid for two accomplishments only; the mining licence in 2018 and a higher ore recovery study. The 2019 PEA can be thrown into the garbage since it was done incorrectly without the inclusion of the Rovina open pit sequentially to the Colnic open pit.
Beyond these accomplishments, 10's of millions of dollars have been squandered away on management contracts and bonuses to Scott Moore and until recently Stan Bharti, $10,000 in monthly rent in Bucharest and 10’s of thousands of dollars in interest expense on it, ridiculous amounts of adminisrative and travel expenses, millions of dollars of losses in poor investments like Vilhelmina Minerals, etc. And the Stanija property is gone and up for auction. How much higher would the share price be right now if this squandered cash was in the company bank account instead?
The other difference is that nothing can be done about the manipulation of the stock. IIROC needs to change rules. On the other hand, shareholders can change the CEO and the Board of Directors if they take the effort to do it. But it must be a team effort.
The danger is that Scott Moore's cash burn will drive this company into insolvency before it is able to generate cash. It appears that he doesn't care and is attempting to profit as much as possible personnally before that happens. Anybody know if he is alive or dead?