Some fresh perspective from a pro
I am a CPA with 25 years experience and have 10 years experience as a professional securities adviser, much of it with start up technology and junior mining companies.
(I AM NOT HERE TO REPRESENT OR MAKE RECOMMENDATIONS ON ANY INVESTMENTS INCLUDING THE SHARES OF MATAMEC EXPLORATIONS. ALL INVESTORS ARE ADVISED TO PERFORM THEIR OWN DUE DILIGENCE WHEN DECIDING TO INVEST OR DIVEST FROM ANY SECURITY)
I do believe that participants on this board are entitled to receive objective, accurate, relevant and reliable information about Matamec Explorations, the broader industry it operates in, as well as their competitiveness visa vie other rare earth metals companies.
I will start by making sure everyone here understands that all mining exploration companies rely on external financing to continue operations and therefore the issue of their ability to continue as a going concern is of critical importance.
In the case or rare earth metals the likelihood of getting financing is greatly diminished due to:
-The negative industry outlook (both short and long term) expressed by most credible research
-The very competitive environment for investor capital that the entire mining exploration industry is facing. (there is very little money to go around and rare earths are by far the most shunned)
I have included a quote from the latest QR with its link (see page 7). I have highlighted the fact that the company expects to run out of cash by September 2017 (less than 8 months from now) which is barely more than two quarters away.
In my opinion, this situation is extremely high risk and is not justified by any potential reward (in this case the outlook for these shares are actually quite low so the expected reward is minimal)
"For year ended on September 30, 2016 the Company recorded a net loss of $195,193 (income of $232,868 to 2015) . In addition to ongoing working capital requirements, the Company must secure sufficient funding to meet its obligations and existing commitments for exploration and evaluation programs and pay general and administration costs. As at september 30, 2016, the Company had a working capital negative of $294,497 (negative $795,767 to december 2015) . Management estimates that these funds will not be sufficient to meet the Company’s obligations and budgeted expenditures through September 30, 2017. Any funding shortfall may be met in the future in a number of ways, including but not limited to, the issuance of new debt or equity instruments, expenditures reductions and/or the introduction of joint venture partners and/or business combinations. amounts reflected in these unaudited condensed interim financial statements. The Company’s financial year ends on December 31, 2016. These consolidated financial statements were approved for issue by the Board of Directors on november 15, 2016. Management periodically seeks additional form of financing through the issuance of new equity instruments and the exercise of stock options to continue its operations, and while it has been successful in doing so in the past, there can be no assurance it will be able to do so in the future. Without new funding being available, the Company may be unable to continue its operations, and amounts realized for its assets may be less than amounts recorded in these consolidated financial statements."
https://globaldocuments.morningstar.com/documentlibrary/Document/ad833263a526cfb7eeb20378c0fc24a1.msdoc/original