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North Shore Uranium Ltd NSU


Primary Symbol: V.NSU

North Shore Uranium Ltd. is a Canada-based company, which is engaged in the exploration for uranium deposits at the eastern margin of Saskatchewan’s Athabasca Basin. The Company conducts its exploration programs on its two properties, the Falcon Property and the West Bear Property. The Falcon Property is located approximately 35-kilometer (km) east of the former Key Lake Mine and the active Key Lake uranium mill which processes ore from the McCarthur River Mine. The West Bear property consists of five mineral claims totaling 4,511 hectares located at the eastern edge of the Athabasca Basin which hosts two producing uranium mines.


TSXV:NSU - Post by User

Comment by WheresMeGoldon Jul 06, 2017 7:07am
127 Views
Post# 26438377

RE:RE:RE:RE:NSU hardly reacting to zinc

RE:RE:RE:RE:NSU hardly reacting to zincWorking capital only appeared to not drop by as much as you describe last quarter because of a one-off adjustment in accounts receivable gain of just over $6 million. Accounts receivable are part of working capital. The quote below is from last quarter's financial results. Remember that the numbers below are "expressed in thousands of United States dollars, unless otherwise stated."

"The Company received confirmation in April 2017 from the Eritrean Ministry of Finance that BMSC had overpaid withholding taxes of $9,780 from the period of 2011 to 2016, related to BMSC’s third party power contract. Withholding taxes are included in operating expenses and accordingly the entire $9,780 was recorded as a reduction of operating expenses during Q1 2017. The after-tax effect of this withholding tax recovery is a receivable of $6,064."

So without this adjustment Bisha is bleeding cash. In previous quarters last year Nevsun ran through previously mined gold to limit the bleeding. The gold is now gone so working capital is depleting fast unless Bisha has been turned around or there is some accounting slight of hand.

At the end of the day, these one-offs have certainly run its course. That's why I believe it all comes down to Bisha for the next couple of years minimum. It's also why I've stated before that the dividend should be scrapped to conserve cash. 

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