Colorado Goldfields Inc. (fka CGFI)

[lesgetrich]

Some very good observations. We can only make projections based on what's publicly available today. Regarding your points,

1.)The company's latest annual report shows Total Liabilities and Stockholder deficit of just $2.1 million which is pretty manageable if you're making $15 million plus per year
2.)Some of the work to bring things into production will probably be paid for out of the 40 million shares allocated for the employee and contractor SOP's which I've included in my calculation. Bonds or other debt instruments could also be used in lieu of stocks. At this point there's just not enough information here to make a better prediction.
3.)Most of the convertible notes were issued pre-split and were diluted with the rest of the shares. I have not tried to go back and calculate the impact on the EPS but I would be interested if anyone could tell us the total number of potential shares that could be issued this way. I suspect that it's no more than a couple million.

As far as management salaries are concerned, I assume that until revenue starts comming in, these will be accounted for by the 20 million shares allocated to the employee SOP.

Again, my predictions on PPS are a best guess based on available information. They could be off significantly but so can the predictions of any stock analyst. If the speculators get involved and the stock starts trading at 40 times earnings instead of 18 to 21 I could be way off. All we can do is adjust the target prices as more information becomes available.