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Gold/Mining/Energy : Big Dog's Boom Boom Room
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To: Amark$p who wrote (155411)8/14/2011 9:47:53 AM
From: Ed Ajootian  Read Replies (2) of 206093
 
amarksp, NiMin Energy (NNN.TO) -- I believe they would need something more than another $3M to make it through this year without reducing or defering their cap ex budget. Their cash at end of 2Q was about $8M short of their remaining cap ex spend and barring a spike in oil prices I just don't see them generating that much cash flow in the next 2 quarters (recall that they incur a 2 month lag between production and receipt of production revenue).

So come September 7, assuming they were not successful in getting any more warrants excercised, we would just be swapping the warrant overhang for an " impending financing" overhang, IMO. This is why I believe it would be a good idea to extend the warrants, since they don't really have anything to lose. Heck, why not extend them for 30 days and see what happens. As Clancy says they plan on getting back on the road in September once everyone comes back to work. If they really stay on schedule in the field they should be in a position to put out a blockbuster ops update in late September.

Another benefit of extending the warrants is that you keep the investors who participated in that PP happy, which is a good thing since its likely that you will be going back to them looking for more money at some point in the future (whether or not the warrants get exercised).
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