Alexandria Minerals Corp ALXDF

RE:RE:Sedars Financials out

[Poriemon]

Altogether seems kind of a meh year for me.

Slightly more than doubled M&I resources from about 700k oz AU equivalent to about 1,400k oz AU equivalent, and inferred resources increased marginally.  I wasn't expecting the company to burn through the cash balance they built up last year as quickly as they did by any means.

I have to admit I overlooked the tax advantages of acquiring Murgor and no one else seems to have brought that up either - that was a nice surprise on my side, even if almost all of it wasn't recognized. An interesting point on that - it doesn't seem AZX discloses their tax pools anywhere (I've typically seen it disclosed in the MD&A if applicable), whereas they obviously have at least a chunk sitting around that isn't reflected in the balance sheet numbers.  The tax pool numbers make a huge difference when it comes to companies looking to acquire you.  With a market cap of 8.5m, assuming they can use the tax pools, anyone who jumps in get the remaining assets at a huge discount price. 

Some form of financing seems necessary, especially when the numbers we're looking at are from April.  However, the outlook doesn't discuss the normal looking for JV partners or requiring financing of some sort, and the general feel of the entire statements doesn't emphasize the need for financing nearly as much as in past releases leading me to believe something is in the pipeline, or we're getting fleeced.

Being a betting man, I'm putting my money on either AZX getting acquired for cheap assets / tax pools, or something coming out here really soon which significantly improves their financial position.

The alternatives are either that management has thrown in the towel already (unlikely - there's no significant debt in the company so there's no real reason to close shop before selling the company), or they feel forced into making a share consolidation and significantly diluting the share count (they've always spoken against this, but bad times can really drag on you after a while).