Q: I have been following this small cap for a few months now and would love your thoughts and analysis of this very small cap miner?
Thanx as always
Gary
Thanx as always
Gary
5i Research Answer:
Our usual caveats around small size, pre-revenue, speculative investment apply here. The company burns through just over $1 mln in cash flows annually and has $1.9 mln in cash but no debt. We would expect the company to need some financing sooner than later, particularly with the run in shares. They remain in exploration mode so drill results as well as pricing of the underlying commodity will remain important. We would view it as a higher risk, speculative name for the time being.