I just started following this stock, and I don't want to step on any toes here, but, there seems to be a lot of confusion as to "how much money has been raised in the last year and how much has been spent". In particular, there was some discussion on the Jan/97 PP of $16.4 million. I do not believe that this PP ever closed. If you look at the PP's that were announced ( not necessarily APPROVED and/or COMPLETED, just ANNOUNCED ) in the past while you have the following:
May/96 - 1,900,000 @ 1.60
Sept/96 - 500,000 @ 4.10
Jan/97 - 4,000,000 @4.10
However, per their Financial Statements only 481,909 shares of the 4,000,000 PP were closed. Therefore the proceeds of that particular PP was not $16.4 m but $2.0 m. This is proven if you look at the O/S shares ( non-diluted):
As at Jun/96 = 8.6 m
As at Dec/96 = 10.1 m
As at Nov/97 = 12.1 m
There were some shares exercised as well to make up the difference. Total cash taken in in 1997 has been just under $4.0 m . Given that they made property option payments of at least $2.3m ( $375,000 per quarter for Don Jeronimo, $300,000 for San Nicholas, $750,000 for Santa Rosa )were made in 1997, they have not spent all that much on drilling.
I welcome any comments as this was my first go-round on analysing this stock.
EW |
