RE: down 12 cents.It is difficult to know exactly how much cash they will have after the Barplats obligations, I suspect not much more than a few million, and that will probably be consumed in increasing the production there.
One cannot rely on the exercise of options/warrants for significant funding, (not at present anyway), given that less than a million of them, valued just under $700K only, are in the money at present.
I bought into ELR for the great potential of Mareesburg and Spitz properties, which even look better now that much more land has been added to the Spitz prospect(KV property). Lots of exploration is required and development of these properties(with no doubt significant capital costs for startup) will probably be put off as the financial and operational focus is on the current production issues. My point being simply that we will have to wait longer to see what we are expecting, but then again, the stock market is all about waiting isn't it? Nobody can say that we don't have the potential. Even if the price of platinum craters around the time of increased production, we should still have a reasonable expectation for a profitable Barplats operation, but maybe not enough to fund the other projects, that's where the need for a higher shareprice comes into play such that we can fund through the exercise of the warrants and options. The downside risk,(not a prediction on my part, just a consideration) as I see it, is that while Barplats does increase production, their costs rise, commodity prices drop and it remains marginally to perhaps unprofitable and hence no shareprice driver to the upside, hence no funding from options/warrants and no funding from operations to further develop Spitz... and Mareesburg. We then end up in the scenario that I painted in an earlier post. All just looking at the various combinations and permutations for our little company. Still, overall,I like the odds and hold on for the duration.
GLTA