North American Tungsten Corporation Ltd NATUF

No News Harv?

[brennan]

You couldn't have read their latest sedar report on fiscal 2nd quarter. They reported a loss of $300,000. They have about $8 million of unsold concentrates lying around their property and in warehouses (nobody wants to buy it). They stated that they would need to come up with financing to continue their operations.

The Cdn$ has jumped to 92c which hurts them. As of March 31, with other variables unchanged, a 1 cent strengthening of the Cdn$ has a negative impact of $400,000 on tungsten sales and net earnings. Since March 31 the Cdn$ has gone up 8-10cents. Economists are predicting PAR by the end of the year (but then, what do they know, they didn't predict it would fall to 77cents either). Oil has doubled since March and diesel has gone up accordingly which hurts them. The whole property relies on diesel for energy.

Net current assets at March 31 were $0.6million (not much indeed). At that date the Company was in breach of a working capital covenant for a $2.5 million overdraft facility.

 They eliminated their 4% RRSP contributions to all employees in March. They cut all employees wages and salaries 10% in May (it was either that or layoffs).

They appear to be hanging on by a thread. Most of the employees are waiting for the dreaded layoff phone call when they're out of camp on their time off.

You don't seem to be doing much DD.

Don't mean to sound harsh but this is their reality. Maybe things get better down the road.