$46k in cash on hand and over $3.2M in accounts payable/accrued current liabilities as of 9/30. It’s surely worse now. Hopefully the perpetual longs will keep bidding this up and give the good guys a profitable exit opportunity.
This would also be a good time to reiterate Sims statement not to put undue reliance on forward looking statements in the presentation and to read the risk factors in the 10k, some of which I’ve copied below:
Our ability to operate as a going concern is in doubt.
We will require significant additional capital to fund our business plan.
We are actively pursuing such additional sources of debt and equity financing, and while we have been successful in doing so in the past, there can be no assurance we will be able to do so in the future.
Feasibility study results are based on assumptions that are subject to uncertainty and the estimates may not reflect actual capital and operating costs and potential revenues from any potential future production.
Our management believes the Elk Creek Project would significantly increase the world’s supply of scandium trioxide. Although the Company’s market studies indicate a positive outlook for demand, there is no assurance at present that the Company could sell all of its production. In addition, the sale of scandium represents a significant portion of the Elk Creek Project revenue; achieving the revenue projected in the Company’s studies is subject to market growth in scandium, which is a developing market with a risk of oversupply and/or undersupply disrupting pricing.
There’s also an acknowledgment out there that they may not be able to achieve specialty chem pricing for Sc, although I can’t find it at the moment. At the end of the day, the mine is entirely dependent on achieving specialty chemical pricing, as using the Sc projections from literally everyone but NB and Matheson would give Elk Creek a negative NPV.
