Oh, it’s definitely this bit:
As at September 30, 2018 the Company’s accounts payable includes some balances which are significantly overdue, including income taxes, royalties, IVA and other withholding taxes owed to the Ecuador Government, who have seized the Company’s bank accounts in order to garnish deposits to pay down the payables. The Company is currently negotiating to defer these amounts. These negotiations are ongoing and there is no assurance they will be successful. During the nine months ended September 30, 2018, the Company incurred a net loss of $6,064 (2017 – $8,557) and as at September 30, 2018, the Company had a working capital deficit of $17,399 (December 31, 2017 – $19,258). Continuing operations are dependent upon the Company’s ability to maintain profitable operations and generate sufficient cash flow from the sale of precious metals or secure additional working capital from external sources as required, neither of which is assured. The recoverability of properties, plant and equipment is dependent on the existence of economically recoverable reserves and the ability of the Company to obtain necessary financing to initiate and complete development.
As for the chances that Core Gold (previously known as Dynasty Metals & Mining) will be able to deliver on the need for profitable operations, in 3q18…
- CGLD returned a net loss of $2.382m
- They couldn’t even return at minehead, as revenues ($7.036m) were wiped out by COGS ($7.72m)
- Once you add in DD&A and office, operating loss was $3.09m
- Working capital deteriorated another half million to NEGATIVE $17.4m
- Even as the share count ballooned further, 12.269m shares added to bring the total to 146.047m
For some reason, the world thinks this company is still worth money and gives it a market cap of over $34m. The world is mad.