Post by
umsurewhynot on Dec 08, 2010 11:03pm
Just read the Q3 report ended Sept 30th
went on sedar and just read the MD&A for Q3 ended Sept 30th.
EMI's weighted avg share count ended the quarter at 30.7M shares.
Working capital is around $900K ($1M cash minus a bit over 100K current liabilities).
Interesting to note that within the first few months of 2011, EMI will have to decide to continue to issue shares and pay certain lump pymts to its various optioners on the Argentinian property, the Nevada lithium property, and then also strike up an actual agreement with IMT on the Chichinka property---remember, right now they simply have an option agreement, but according to the MD&A, haven't yet created an 'effective date' for the Chichinka property, so EMI hasn't yet issued any shares or paid any signficant amount of money to IMT.
I guess they're waiting for the independent geologist analysis before signing on officially with IMT for the 75% interest.
With 900K in working capital, and payments due on various properties to honor existing option agreements due in Feb and March of 2011, i'd think they'd need more capital probably by the summer of next year, and that is EXCLUDING any potential developments with the Chichinka property (ie if they sign agreement and begin drilling, they'd definitely need a $1M or $2M to do so).
If you wanna use technicals on the stock (which aren't really that valuable on a penny stock), support should be in and around this
.15 area, and level II shows some big orders in the
.14,
.15, and
.155 area (of which some are my buy orders pending), however, they've been getting eaten away this week.
We'd probably need a 3M share volume day just to get back up to
.20-0.22, and then maybe a 6M share volume day to get back up to test recent highs at
.25.
If they announce some news with IMT regarding Chinchinka, that'd probably be the catalyst for a short-term bounce.
However, as it stands now, we're slowly drifting lower on ever-slowing volume, and if we break
.14-0.15, could see a drift down to
.10 by the 1st quarter of 2011 (assuming no news and assuming no rally in the sector like we had earlier this month and last month).
Anyhow, i'll continue to accumulate my position at
.155 and then if it drops down to
.13-0.135.
But i know full well EMI will have to issue more shares to raise more money sometime in 2011--hopefully its for a good cause like drilling on the Chuchinka property.