Post by
ResourceMiner on Jul 16, 2012 11:42am
Cash Position
When the financials come out, be sure to take a look at the accounts payable when evaluating the company's cash position. My guess, yes a guess, is that Cline has begun dragging out paying the payables to perserve cash for reporting purposes.
Comment by
ark88 on Jul 16, 2012 2:35pm
At this level, the market will be eyeing only the cash position when the financials are released. It's hard to determine the impact on the SP, but I would think anything less than 20 mil, there would be selling pressure. GLTA
Comment by
GUNSS on Jul 16, 2012 4:06pm
I think that a cash balance of $15-$20 is expected, so I wouldn't assume that anything under $20 million is a bad #. Personally, I want AT LEAST 6 months of cash liquidity, call it $15 million with a projected cash burn of $2.0 million per month.
Comment by
ResourceMiner on Jul 16, 2012 4:13pm
Someone correct me if I am wrong, but I think Cline is on the hook for all wages of laid off workers for the next 60 days. If so, I can't see a burn rate as low as $2MM. Even without the laid off worker compensation, I think the care and maintenance of the mine, legal, accounting, overhead, etc. will be much more than $2MM per month.
Comment by
hoagy16 on Jul 16, 2012 4:20pm
Agreed.The interest alone is almost 25% of the $2m.