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Gold/Mining/Energy : Dynamix Corp (DYX was Dakota Resources, DAK) -- Ignore unavailable to you. Want to Upgrade?

To: Benjamin Ng who wrote (579)	4/29/2001 4:38:38 PM
From: Benjamin Ng	Read Replies (1) \| Respond to of 587

Dynamix Corp's financial statements (FY2000 & 2001Q1) are now (finally) on SEDAR: sedar.com Hopefully DYX will resume trading during the first week of May. When I last called DYX (back in February or March), I was told that the statements would be filed "shortly" and that DYX would then resume trading about a week after. The last trade was on March 5, at a price of 0.07, bid/ask of 0.05/0.07. At first glance of year-end financials, it looks like the company is improving on the revenue-generation activities (mostly the seismic arm). I'm not in the O&G nor financial industries, so I don't know what all goes into operating costs, but their costs are disappointingly high. I don't know if it's part of loan/debt repayments (we're making more money, so let's use it to pay off debts?). Indeed they have improved their cash (up $676K in 2000 compared with down $466K in 1999) and revenue positions ($6.1M cf. $2.6M). Based on previous quarterly statements for 2000, it did look like they would have a positive cash flow with real EPS by the end of the year. What wasn't so obvious was that operating costs would be so overwhelming. Also, when I talked to the company, it was indicated that the operators of the Greasy Creek project in Kentucky are being difficult, and this is reiterated in the year-end statement. Ted Wyatt estimated that the production to date is only a small fraction of the property's potential, but due to repeated equipment failures, it hasn't yielded maximum volumes (but the wells continue to produce today). Also, getting the operator to pay up DYX's fair share (25% working interest) has been difficult, and contributes to the poorer-than expected results. The 2001Q1 results were disappointing, and DYX warned me it wasn't going to be great. Hopefully this isn't a reflection of the rest of the year. The outlook is improving, but I'm not holding my breath. One of the best strategies I can think of would be to make the Fastway business unit attractive for an acquisition. It is revenue-generating ($6+ million/year), but needs to be streamlined to be profitable. If they could slash a million or two off costs while maintaining revenues, they would quickly have a positive EPS. The seismic arm could be a valuable part of a bigger O&G company's operations... maybe that in itself is worth a gamble. Keyword is gamble. Ben