RE:RE:RE:RE:RE:RE:My TakeDirksidetrack wrote: Total Assets = Liabilities + Shareholders Equity. Therefore Shareholders Equity = Total Assets minus Liabilities. Ok not literal you're right. But if oyl goes bsnkrupt then it becomes literal because once assets are sold off and creditors get what they can then shareholders will be down over 303 million. Note that under Canadian law creditors get paid first. Shareholders last, if there's anything left. Think Nortel.
Correct. Theoretically...
However, this is a prospecting company, so most will always have higher liabilities than assets until those assets are proven to be worth zero or $$$$
Asset's bookvalue today is not tomorrow's value. If asset value goes up significantly due to a success...
Equation will look a lot different.
Secondly, public shareholders' gains and losses are a function of the market not the balance sheet.