RE: RE: RE: Financials - March 31st, 2008 & 2007Longone:
Some good points. There is no debating that the remaining expenses they must incur on Pasquia Hills are substantial. As of this Oct, the will have paid 3 million (assuming financing completes) and will still have two more payments totaling 2.5 million more before they have completed the earn-in. A good chunk of cash no doubt. I do feel there is some excellent potential for this property but there is no doubt that it has not come cheap.
On the topic of computer expenses, the financials, as I read them say they spent about $5,000 on computer expenses in 2009, not 30,000. The total purchase value of all of their computer equipment since the company was formed is $38,569 as of 2009 which is up from $33,670 as of 2008. The difference between those two is how much they spent on computers in 2009 -- just under 5K (you can see this figure reported in another area of the financials under equipment expenses). Since computers would cover geological software, printers, monitors, answering services etc in addition to laptops, $5K per year for a small company is not outlandish. They didn't spend anything on other office equipment in 2009.
70K in office rent does seem high for a company of this size. The are renting two suites in an office building in Calgary and this would seem unnecessary given the size of the company. Renting space in a downtown tower is more costly than the space needed for a small business in a strip mall or industrial plaza but even so, 70K is high. It's also, however, in line with what a lot of these exploration companies spend on office space. Not saying that justifies it and I do feel they could reduce this expense. They should be able to get a space that meets their needs for half that.
I'm sure you are correct that goldnev could pare back expenses in several ways if they really set their minds to it. They aren't out of line when you compare to many exploration companies -- and the oil/gas folks seem to be the worst. In general, these companies should be less lavish with the fancy office space at least until they are bring in some $$ of their own to foot the bill. I don't think I'd go so far as to say the expenses are shady however...
Mark