The Quarterlies Well, with the one month extension, the quarterlies to December 31, 2011 are now out. The financial and operating status of this conglomerate is as bleak in international accounting language, as it was in Canadian.
As far as financial results, the situation is much as it has been in recent quarters. The $6 million low rate loan [the purpose of which has never been justified] continues to increase, with unpaid interest it is now $6.55 million. The collateral security on the loan took another dive in coverage, down $880,000 since the last quarter. The value of the collateral is now $2 million less than the loan. The company's only revenue is investment returns of $131,000, half of which is interest building up, but unpaid, on this under-secured foreign private company loan. It would be interesting to know how management concluded this transaction benefited shareholders!
ISM took another hit on the value of marketable securities, almost half a million unrealized loss in the quarter. With the administrative cost of running this conglomerate at another half million, the company continues on its one step forward, three step back, journey to glory.
Anyone that might have wondered if the company was focused on something, will be reassured by the MD& A commitment that "The Company?s main focus continues to be its nickel target on its Langmuir Property near Timmins, Ontario." Expenditures that might be considered as exploring or proving up the object of the Company's focus totaled $90,000 - the same amount as the CEO earned for overseeing the main focus, and all the other little focuses. Herb Brugh continues to provide services as a Secretary for about $9,500 per month, and another Officer/Director delivers business solutions for $5,500 per month. The company has again pre-planned, by prepaying $100,000 for consulting services to the year 2021 to a Director who reached government retirement age fifteen years ago.
In any case with cash revenue of about $22,000 per month, it can be seen that the above remuneration, along with $15,000 per month rent, car allowances and all that other administration stuff - ISM is [slowly?] bleeding cash. Cash and short term investments went down $1.2 million in the quarter, to $5 million. Three short years ago this cushion was $37 million! What has been accomplished with this expenditure of $32 million? Assets have increased - some marketable securities that lost $500,000 last quarter; a $6+ million low rate loan for unknown reasons, to an unknown foreign company; and more costs on mineral properties that haven't been proved as economically viable - plus $11 million more in accumulated deficit.
Its not a promising picture, and the mystery on the eventual value of Langmuir, if of any value, continues. Other companies from a similar starting point, have had numerous NI43-101 reports, and have moved on to production, or abandonment. There is every possibility that the promised update, if it is completed in the next few months, will not be the full economic evaluation - and the administration costs carry on. One small, and long overdue positive note, it appears that the Investors Relations expense has been reduced, and the Chief Operating Office has been eliminated. These are costs this company never justified, in my opinion - they just added to the aggravation of doling out $30,000+ to a CEO that should have known better.
That's it for the Sedar flurry. Any bets on when there will be a News Release on mining activities [the main focus of the Company]? The last one was March 22, 2011
And volume today is 2300 shares for $363.50!