GREY:LBEFF - Post by User
Post by
ExSudburyGuy2on Mar 29, 2008 1:36pm
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Post# 14921423
Financials
FinancialsSo I took a look at the financials and frankly, wasn't that surprised. It was obvious the company needed money to keep operating from the previous financings. The financials now confirm that.
Liberty's revenue barely covers the mining operations and depreciation. All other expenses add to the net loss. And it appears that will stay that way for a few months yet. So, I don't expect the $21m the company raised will be used for any acquisitions, since Liberty needs the cash to keep operating. And as the MD&A says, even that may not be enough.
"The Company may need to continue to rely on various forms of funding in fiscal 2008 until sufficient cash flow from mining operations can be realized."
That's always scary because it means more dilution and more bad news for the share price.
Interesting also, that Liberty, which prides itself on its openness and transparency, chose not to issue a press release (as the vast majority of companies do), but rather just quietly posted the info on Sedar on a Friday evening. I don't like that at all.
So, I won't be buying back any Liberty shares anytime soon.