GREY:NWSKF - Post by User
Comment by
goindeeperon Sep 25, 2014 12:03pm
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Post# 22969861
RE:How come NES has so much of a deficit? $16,161,075
RE:How come NES has so much of a deficit? $16,161,075Newstrike Capital is a junior mining explorer and by definition will run a deficit until it is sold or they put a mine into production. This is a well known business model in the mining industry. It is analogous to a home builder incurring a deficit by paying for land, materials, and labour to build a house. The deficit (cash outlay) will continue until the home is sold. As a part owner/builder of NES, I understand the risks and do expect to make a profit on sale based on the mineable economic resource to date, the excellent management team, and the confidence shown by other majority shareholders.
Hopefully that makes it more clear than the last time you brought up these concerns. If your due diligence was not capable of uncovering these simple facts of NES' business model, you may want to consider selling your shares and choosing someone else to manage your investments.
philway wrote: And no intention of building a mine here? Deficit $ ($16,161,075) Page 17 of the last interim, section 1
The Company has a history of losses and no current source of revenue. Continued operations of the Company are dependent on the Company's ability to receive continued financial support, complete equity financings, or generate profitable operations in the future.
They had cash but it is now running out and any new financing will have to consider the debt here.