Ads get everywhere7 Jul 2025 07:35
Good morning all, I think many have read the latest press /ads for Hottest stock etc, but you must read sections from RNS as it is still a big gamble but might pay off.
Going concern
The Group and Company's financial statements have been prepared on the going concern basis, which contemplates that the Group and Company will be able to realize its assets and discharge liabilities in the normal course of business. Despite this, there can be no assurance that the Group or the Company will either achieve or maintain profitability in the future and financial returns arising therefrom, or may be adversely affected by factors outside the control of the Group and the Company.
The group and parent company have incurred losses since incorporation, and there is a reliance on obtaining further financing through equity or debt instruments in order to continue to meet working capital requirements and to fund exploration activities. These events or conditions indicate that a material uncertainty exists that may cast significant doubt on the group's and company's ability to continue as a going concern.
Whilst acknowledging this material uncertainty, the directors consider it appropriate to prepare the financial statements on a going concern basis for the following reasons:
· As disclosed in the post balance sheet events note 28, the group completed a fundraising of £3,100,000 to fund the planned development scoping and exploration activities in Finland along with working capital commitments for the year ahead;
· The Group has no committed exploration expenditure on its granted mining licenses and has the ability to reduce all spend in the event that it needs to conserve cash balances;
· The Group can reduce most discretionary administrative expenditure if needed including deferral of Director fees; and
· The Group's Board of Directors have significant experience in the debt and equity capital markets and specifically have a successful track record in funding mining operations, new mine development and exploration activities and are further considered capable of securing ongoing debt and equity capital financing for the Group.
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