I've reviewed ALL 10K's 10Q's, etc of their financials extensively and I find that the financial statements are very up-front about issues they might have (OTCQB companies are obligated by law to be upfront so that's a plus). I still find sirg to be one of the best sub-penny lottery pick in iHub. And if you've got a better one, please PM me so I can do some DD and invest there too.
You have to remember that this is why a sub-penny is SUB penny. It's gonna have SOME issues. If it had ZERO issues, it wouldn't be at this price point! Stating that you have to read the 10K is a little laughable because basically you could moderate every board on iHub and throw up the same caution flag. It's also laughable because people who put their money in something WITHOUT reading the 10k's should never invest anyway.
The GREAT NEWS with SIRG is there's a REAL asset and IF these guys can secure a funding situation that discounts the copper in production, this has a TON of potential. It appears that the newest engineering reports from their website are even more promising than previously thought. Based on current O/S, in production this will have a PPS that more resembles .15-.25. And that's without expansion that they claim to favor over dividends (according to their 10Q - yeah, i actual do read it all).
Will it get there? That's the magic question that if you think the answer to that is YES, then jump in and invest, and if you think it's NO, then stay away.
In order to maintain a REAL asset like this, there are costs, and to handle those costs, some form of short term toxic financing must be used for the company to stay afloat.
It's preposterous to think that they can somehow use toxic financing to fund the entire operation. It's impossible, it isn't going to happen, it would be too many shares.
Make no mistake, there are only one of two options here:
NO FUNDING DEAL and this thing falls apart within the next year or two, or NON-TOXIC FUNDING DEAL and this thing flies within the next year. The longer it takes for a non-toxic funding deal, the more the long term pps will suffer due to dilution.
IF the funding deal happens now, GREAT, pps of .15-.25 is very attainable depending on what happens in production and the cash flow generated and based on the current o/s.
IF the funding deal happens after 6-10 months, then that pps target will likely be something like (just ball-parking) .08-.18 because again, new shares from the upkeep will have diluted the o/s.
Just my .01 cent
You know you are caught up in sub-penny investing when your gold mining stock used to be a cinnamon bun maker, a technology company, and an online auction site!
