Audit Update - Geez, all''s fineJust spoke to management of SDRG. My god, it is amazing that people are so skittery about a company that is moving forward on all cylinders.
To reiterate, there are literally ZERO "issues" with the financials. In fact, the only real item under discussion is the volatility rate that should be used to price warrants. Because the stock has risen so much, it is difficult to pick the right number - LOL.
Silver Dragon had all of the relevant information for their auditor, SF, well in advance of their deadlines. However, amazingly SF decided just days ago that, rather than do the audit at their Toronto office, they wanted their Hong Kong affilitate to do it in person in China. That affiliate is there now, and due to this delay the audit will likely take around 1-2 weeks to complete. However, this time frame is WELL IN ADVANCE, by several weeks, of any deadlines regarding the stock's listing.
The auditor, SF, is an accredited auditor in Canada with international affiliates, but most of its audit work is domestic (U.S. or Canada). Thus, I sense they were taken surprise by the expanse of SDRG's operations in China this year, a market they likely have not had much experience in.
Actually, as the Sino-Top transaction only closed in November, there is very little "accounting" to do in China, as SDRG spent less than $1 million there in the last two months of the year. However, I think SF's limited international experience probably led them to be a little hands-on, particularly in the unfamiliar world of China. As I said, they have an affiliate in Hong Kong to do the work for them, but I sense they don't have to use it that much.
Again, I can't emphasize more that there are literally zero "issues", and that there is essentially no chance of a problem with the 10k filing. Thus, if you want to believe the worst (in a situation where there is no precedent for doing so), you're just taking yourself out of a position that is probably in the bottoming process as we speak.
Oh, and by the way I misspoke earlier when I said the Chinese government owned 3%-4% of SDRG. They actually received four million shares in the initial deal when SDRG bought 60% of Erbaohuo, to go with the two million shares they got last week when SDRG bought an additional 30%. Thus, at six million shares, they own just under 10% of SDRG! Somehow, I doubt that the conservative Chinese government would be building such a big stake in SDRG if it were about to go bankrupt - double LOL.