RE:Stockpile project generated a gross profitThat is an incredibly weird way of releasing the costs from E&E. In particular on the cashflow statement, how does the 3 months investing activities possibly make sense? At the very least it looks like the "E&E costs transferred to production costs" should actually be an add back in operating activities. Also, if the operating costs got transferred to E&E, why did they get capitalized first and then transferred to expense after rather than just expensed?
Almost all capital expenditures for YTD Q2 appear to be related to the stockpile project. With that in mind, if we collapse cash flows from investing activites into cash flow from operations (which is where the costs got moved and the revenue recognized), you end up with CFFO of +$237K for Q2 YTD and FFO of $686K.
But I digress on the accounting; cash is king. Working capital swung from ($600K) to $1200K. Current burn rate is only roughly $90K per quarter (have you guys seen what Stephen's cash salary is? look it up if you haven't). And I was wrong previously about an option grant - total FD shares as of June 29 is only 66.7m shares.
The Company is looking like it's in a pretty decent shape even before the PEA comes out.