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Maple Gold Mines Ltd V.MGM

Alternate Symbol(s):  MGMLF

Maple Gold Mines Ltd. is a Canadian-advanced exploration company. It is focused on advancing the district-scale Douay and Joutel gold projects located in Quebec's prolific Abitibi Greenstone Gold Belt. In addition, the Company holds an option to acquire 100% of the Eagle Mine Property, a key part of the historical Joutel mining complex. The Douay Gold Project is located over 55 kilometers (km) southwest of Matagami and 130 km north of Amos, Quebec, by road. The Joutel Gold Project is 100% owned by the 50/50 Joint Venture (JV) between Maple Gold and Agnico Eagle Mines Limited (Agnico). Joutel Gold Project is located approximately 70 km southwest of Matagami and 125 km north of Amos, Quebec, by road. The Eagle Mine Property is a 77-hectare property located several kilometers west of the former mining town of Joutel in mining-friendly Quebec, Canada. Its Morris property is located approximately 30 km east-northeast of the town of Matagami, or over 110 km north-east from the Douay camp.


TSXV:MGM - Post by User

Post by Angelique01on Aug 07, 2023 12:22am
251 Views
Post# 35575839

Working Capital

Working CapitalIn assessing whether a company needs to raise additional funds financial analysts look at the working capital position not solely the cash in bank. It does a company no good to have for example a $20M cash balance but invoices totalling $25M  that have to be paid.  That is why they look at the working capital position of a company which is by definition (current assets less current liabilities).  In the case of Maple Gold at the end of March they have currrent assets of $9.5M which includes the $8M in cash.  However they do have current liabilites of $2.8 that have to be paid which gives them a working capital position of $6.7M at the end of March.
Historically over the last 2 years the burn rate has been $900k per month of which $500K per month is related solely to general and admin expense. 
On the bright side the worst case scenario is you can now only lose .085 cents per share. 
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