Excerpted from MD&A April 22, 2013 MEK.V Financial Condition Summary Excerpted from MD&A April 22, 2013:
“Working capital at December 31, 2012 is $3,020,792” – should be more than enough for 2013 programs and beyond.
“Current assets of the Company as at December 31, 2012 were $3,101,827 compared to $5,224,314 as at December 31, 2011. The decrease was attributable to expenditures on the Company’s exploration and evaluation assets and for general and administrative purposes.”
Burn rate for 2012: $2,122,487 / 12 = $17,687 / month cost – all in, very cheap.
“Expenses incurred during the year ended December 31, 2012 consist of:
i) Business development of $169,496 (2011 - $246,199) (decreased due to decreased advertising and promotion activities and associated travel expenditures)”
= Cost reduction of $76,703 for 2012
“iii) Professional fees of $107,899 (2011 - $109,989) – these amounts include legal, audit, accounting and consulting and decreased due to the timing of invoices received from consultants during the current period as well as additional costs related to IFRS transition in the previous year.”
= Cost reduction of $2,090 for 2012
“iv) Office and general of $122,062 (2011 - $162,764) representing office supplies, printing, and presentations, and occupancy costs (decreased as a result of no exchange filing fees in the current period associated with any private placements that were completed in the previous year)”
= Cost reduction of $40,702 for 2012.
“v) Salaries and wages of $354,621 (2011 - $281,157) an increase pertaining a lower level of wages being charged to deferred exploration and evaluation and resultantly more in General and Administrative costs.”
= Increase of $73,464 for 2012.
“vii) Share-based payments of $137,786 (2011 – $485,558) (recorded upon vesting of stock options to employees, directors and officers and is dependent upon vesting levels in a given period).”
= Cost reduction of $347,772 for 2012.
Cost Reductions vs. Cost Increase From Previous Year:
$467,217 (savings) - 73,464 (increase) = $393,753 net savings improvement from 2011.
Cost reductions vs. cost increase improvements over from 2011: (cash only):
$119,495 (savings) - 73,464 (increase) = $46,031 net cash savings improvement from 2011.