Poor Earnings Release A lot of rhetoric and fluff in the earnings release but here are the key facts. Cash as at August 31, 2012 was $7.6 million and as of Oct 15, 2012 the cash position is $5.8 million. The company is depleting its cash at significant rate and I question whether the company will have enough cash to make the next interest payment of $2.5 million due in Feb 2013.
Here's what management had to say. "In addition to its working capital requirements, the Company must secure sufficient funding to continue developing and expanding the New Elk Mine and keep its mineral claims and title in good standing. The Company is currently working on securing additional capital to meet these needs and several initiatives are underway in this regard. There is however no guarantee that the Company's financing efforts will be successful or sufficient to fund existing commitments."
Good luck raising additional capital on reasonable terms. This company is in big trouble.