RE:Financials out ..................The financial aspects are good, but the MD&A will probably kill the stock tomorow:
Management believes the potential exists for potash prices to remain at low levels for some time and accordingly is committed to maintain a strong cash position by minimizing spending. Karnalyte has a working capital balance at the end of the third quarter of $49.3 million which will allow the Company to sustain itself until construction of the Wynyard project becomes practical. With the work done on detailed engineering and site preparation to date, the Company can now minimize additional capital expenditures without impacting its ability to launch full construction upon further financing. The Company believes this strategy will allow it to maintain a significant cash balance and be in a position to capitalize on opportunities when the potash market rebounds.
Basically, they will hibernate and will slowly burn the cash. This does not surprise me and, sadly, this is the only thing they can do. Potash market is bearish and the majors are still expanding their production all over the world. I guess its time to forget the 3-4 $ price target in 2014, put the stocks under a pillow and forget it for 5 years