Working CapitalOverall the below is the part that I don't like...working capital from 6.3 million to 800K in one year. At least they have a line of credit instead of having to do a PP. They need to mine a bunch of ore and fill the corporate coffers.
As at January 31, 2008, the Company's cash and cash equivalents, short-term investments and silver bullion were $5,370,903 [July 31, 2007 – $7,602,834], working capital was $818,886 [July 31, 2007 – $6,340,137] and the deficit was $18,552,521 [July 31, 2007 – $17,884,514]. During the three month period ended January 31, 2008, the Company generated cash of $1,829,307 from its operations [2007 – $1,875,145].
The Company has in place certain agreements with Auramet Trading LLC [“Auramet”] in order to provide the Company with external sources of funding, should it be required. These agreements include a silver purchase agreement, and bridge loan facility.