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The author of the article holds a personal interest in London Capital Group.
Markets | Fri May 27, 2016 6:28am EDT Related: FINANCIALS BRIEF-London Capital Group says knows of no reason for share price movement * Confirms that it knows of no reason for price movement Source text for Eikon: Further company coverage: (Bengaluru Newsroom: +91 80 6749 1136) http://www.reuters.com/article/idUSASN0002IB
8 April was the last time Mr.Market was in this optimistic mood and the price rose 62% to 8.94 .It wasn't long before the black dog reared it's head with a fall to 4.50 .
http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/PAF/12820897.html
Should the statement see below re'.......these conditions indicate the existence of a material uncertainty which may cast significant doubt over the Group's ability to continue as a going concern ..... 'raise concerns? 'Having commenced initial development activities for the Sao Chico Mine at the end of 2014, this mine has been in development during 2015. On 1 February 2016, the Group announced that, with effect from 1 January 2016, the Sao Chico Mine had achieved Commercial Production. The Palito Mine has been in Commercial Production since 1 July 2014. On 30 December 2015, the Group entered into an agreement with Fratelli Investments Ltd ("Fratelli"), its major shareholder, whereby Fratelli agreed to provide an unsecured short term working capital convertible loan facility of US$5 million ("the Facility") to provide additional working capital facilities. On 6 January 2016, the Group announced that it had made an initial draw down of US$2 million against the Facility. The balance of the Facility may be drawdown at any time up to 30 June 2016. The facility is to be repaid by 31 January 2017. The Group has an additional secured loan facility which is repayable by 31 December 2016. At 31 March 2016, the amount outstanding under this facility was US$4.0 million. The Directors anticipate the Group now has access to sufficient funding for its immediate projected needs. The Group expects to have sufficient cash flow from its forecast production to finance its on-going operational requirements to repay its secured and unsecured loan facilities and to, at least in part, fund exploration and development activity on its other gold properties. However, the forecasted cash flow projections for the next twelve months include a significant increase in production from the Sao Chico Mine compared with the preceding calendar year. Whilst the Group has declared Commercial Production at the Sao Chico Mine, there are risks associated with the commencement of any new mining operation whereby unforeseen technical and logistical events result in additional costs needing to be incurred, giving rise to the possibility that additional working capital may be required. Additionally the Group is exposed to changes in gold price and currency exchange rates. Should additional working capital be required the Directors consider that further sources of finance could be secured within the required timescale. On this basis, the Directors have therefore concluded that it is appropriate to prepare the financial statements on a going concern basis. However, there is no certainty that such additional funds either for working capital or for future development will be forthcoming and these conditions indicate the existence of a material uncertainty which may cast significant doubt over the Group's ability to continue as a going concern and, therefore, that it may be unable to realise its assets and discharge its liabilities in the normal course of bu