Member Info for shamI89

They would need lender's permission as right now this fiasco would impact every aspect.They are struggling to pay mining contractors how can they pay lenders?A lot of payments would need to be pushed forward .

Total cash was 7.9 million as per last update and cash flow was 0.2 millions.Suspension of mining operations at one mine would impact cash flow heavily and can result in negative cash flow.If they had money they wont be talking to "lenders" in my opinion second mine is at risk of closure too.

Problem is this update put question mark on every projection,estimate and target as there is something seriously wrong with the model.Dont think this quarter would be profitable, shareholders would be heavily diluted if not wiped out.Coirca was compelled to stage this sh** show and second mine is at the risk of closure too as I cant imagine it being "friendly talk over the table".

Do you really think that 27 millions would appear out of thin air to settle this dispute?This must have been going on for quite some time and a vague RNS was released.But we found out about it through a newspaper.When last RNS was released everyone thought it can be about a small pay rise or anything minor issue but nobody thought amount owed is 27 millions.Coirca is holding all of these cards I am afraid and now ee know why did they "need to talk to banks" in first place.

But main question is why did company let it get to this stage as they should not have a cash flow problem.There is something wrong here and some tough questions should be asked.Why would lenders fork out 27 millions for nothing?

Problem is they are contractor at second mine too and if dispute escalates further then I am sure they will use all sort of things to make company pay.But why did company let it get to 27 millions and where is money going as gold is hitting all time high.If production is suspended at second mine then we will have a company that has two to pay lenders and coirca with no income.Someone pointed it out yesterday that they are in discussions with their lenders as due to money issues.But 27 millions is beyond anyone's imagination.

Issued an RNS to explain the situation as coirca is contractor at second mine too and if they suspend work there then it is all over.

Gold is hitting all time high if these lot could not pay contractor now they can never pay him ever.Equity has no value as whoever would foot 27 millions would want a big chunk of pie.

Market has lost confidence and is probably waiting on update next week.Uncertainty and lack of clarity is damaging shareprice

Sellers are still around and now we have two institutional sellers and a buyer.

Seminar on 27 should provide some information but right now we dont know who is dumping these sahres and we have a lot of traders locked in too.However they are only providing liquidity for seller to sell into.Time will tell but volume is too much to be absorbed by private investors.

Seller and it looks like a lot of traders have taken heavy positions too.It is prudent to wait and see.

A big seller in background may be.

It is game over I am afraid.Good luck with legal case though as there are countless aim investors chasing managements for losses.

Show me a compamy which says "we are sh*t and have no intention of making a penny in profit" .That is how these companies survive they paint rosey pictures and then keep on issuing new shares.That is where research comes into play.It was a "really good asset" but no major bought it and no bank was going to finance it ,seems believeable does not it?

Stas20 what about them "neverending share conversions" as there were massive sells and some iditots thought it is "their chance to average down".From 25 to 0.05 you should have asked yourself why is shareprice falling?Circus would have carried on but they ran out of idiots.

Dont think you can blame management for releasing them RNS as that was part of their job.When this death spiral financing was announced share-price was way high and then we started seeing daily drops.At one point it had lost over 90% value and some idiots were ramping it mad.Shareholders were never going to win as there was no limit and price kept on falling.

I am talking about "death spiral financing".Common sense dictates that if these assets were really good why did they not get proper financing?Lower the price went more shares were converted and more money was made.This was sitting on crazy valuation at some point and someone has made hell lot of money here.

Bondholders have been fleeced too but I do thinl they have made most of their money back through never ending dilutions. This is name of the game.I did try to warn people but I guess some people were too thick to listen.Ever since they announced debt spiral financing share-price was going one way while we had people "averaging down".Sometimes taking time out to make sense of things does help.

These assets were worthless, oil was there but could not be extracted commercially but was used to fleeced investors.