I had forecast company would end up between 150 and 200 million shares oustanding this year, based on the quarterly cash requirements shown on last 10q, with assumption cash requirements would not decrease in a year that the mill is projected to re-open, and that at best it would take a few months before mill would generate positive cash flow.
If I take current figure of 101 million, a 50% discount to a cash price of $.01, $105,000 cash required per quarter, that would be an additional 63 million shares,or total outstanding of 164 million within 3 quarters.
The 10q refers to a total convertible note funding of $582,000, and while I find it a bit confusing to see what is left, if we take the unamortized balance of $236,022 as of November 30, that leaves a difference of $345,97l.Furthermore if I understand their filings, they do not file an 8k whenever shares are converted.That figure of $345,971 roughly compares
to $105,000 (cash received last quarter) times 3= $315,000.
Since I dont believe they can operate with no cash, and issuance of shares for services cant cover all vendors, the only conclusion I come to is the company is still drawing funds from the convertibles. Convertibles have a six month hold, so I guess a race to get mill up and running !However I must admit I didnt realize they may have had that much funds left on prior convertible note agreements, if I understand the last 10q.
I guess my question is do people think that $315,000 for the next three quarters enough to meet property obligations, operating expenses, and enough to get mill up and running generating positive cash flow ?
I would be conservative and up my forecast on outstanding shares to be reached this year from 150 to 200, to now 175 to 225 million shares. What is your opinion, is this too high or low a forecast ?
