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A 'Miner' Problem, $2 Billion In Negative Working Capital
In a lengthy bear market for mining stocks, there have been repeated calls by pundits for the culling of hundreds of companies that have been unable to raise new money or generate shareholder value. This piece of the capitulation process, some say, is what is needed to put confidence back in the market so that the bull cycle can start again.
Tony Simon, President of Seguro Consulting, has put together a report that has rather concerning findings for those interested in the venture markets. The chief finding in his report is that there are 589 companies (roughly 40%) that should no longer be listed as they do not meet the continuous listing requirements required by the exchanges.
As per Policy 2.5 in TSX-V document:
Working Capital or Financial Resources of the greater of (i) $50,000 and (ii) an amount required in order to maintain operations and cover general and administrative expenses for a period of 6 months.
However, these nearly 600 companies still remain listed, which helps generate fees for a variety of service providers including legal companies, auditors, and listing fees for the exchange themselves.
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The full worksheet of 589 companies and commentary can be found here and here.
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Since when did a posive capital requirment keep anything from being the whole world oporates on negative capitol only the common person need worry about being broke
Besides, the market isn't there to benefit shareholders . . .
The Managements of these Companies have all been prepared to sit back and watch the CB's/BB's artificially crash the prices of PM's with "Paper" and not call them out whilst physical demand from China and India alone exceeds total Global production (Ex-China). With COGS well above the "Market" price of paper Gold, even with lower energy costs, there is clearly no interest in their shareholders. So, IMHO, it couldn't happen to a nicer bunch of Guys........
miners should take accounting lessons from tehebankers.
Mining companies are competition for bankers. Mining companies create real assets, while the banks create debt. The world can use either in trade.
The banks like it better when those producing real assets are enslaved to them with debt.
If you still have any failth in these "managements" just take a look at the recent appointments to the Barrick advisory board.
I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.jobs-review.com
and return on capital is at a 40 year low.
all consequences of central bank gold price manipulation.
wake up mining assholes before you're working at burger king.
Why is that?
- Because we reward contraction - not expansion
Interest rates determine the growth rate of the saver and the contraction rate of the borrower - just that simple
How do you find this stuff??
Tyler, you are amazing!
Not brown-nosin' but this is an amazing blog.
Chuckle ... how indeed.
How do you find this stuff??
Tyler, you are amazing!
Not brown-nosin' but this is an amazing blog.
A double post lends doubt to your non-brown nosing claim.
(just joshin'. I snatched up those links lickety-split)
If the PTB want you to produce PMs at a loss, you continue to do so. It's the free market in action.
No way dude. The bankers picked the correct price to sell everyone else's gold. It is impossible that they would empty all the vaults of assets they are holding for others too cheaply. They are too smart for that.
A "free market in action"?
That might be the dumbest things I've ever read here in five years. Especially in relation to precious metals like gold.
I was being sarcastic. I guess some took me literally.
I am involved in a few companies that are on the list and a few that are not.
Many of these undercapitalized companies have wonderful mineral assets but no exploration moaney becuase of the low price of commodities as well as the low investor interest.
Quitting now would be stupid; why would one quit at the bottom of the cycle? It is preicsely the time to purchase mineral assets, as they can now be bought for a song.
One should buy when the blood is running in the streets, and sell when everybody is partying,dancing at the saloon.
Sell Apple, buy a low priced miner with a good property with sensible management whom own large equity stakes in the firm.
and if it is not a low price, but a high price and they will go even lower?ROFL
Here is a long term chart of the xau/gold ratio.
http://www.macrotrends.net/chart/1439/xau-to-gold-ratio
The ratio was range bound for at least 25 years, but in 2008, war was declared on the mining industry. If you think the gold price is manipulated down, then beginning in 2008 the mining industry as a whole was even more aggressively sold. I suspect that the goal is to bankrupt as many miners as possible (producers and explorers) in order for the monied folks to sweep up the best operations and properties for peanuts. Once the transfer of ownership is complete, only then will will see gold rise in price substantially.
+1 for link to macrotrends, one of my favorite sites
I have been able to find only two companies in the PM industry that I feel good about buying, and I'm not saying what they are until my allocation to precious metals equity is full.
C'mon, you can tell us. We won't tell anybody.
For fun, check out the insider buys for Belo Sun mining - BSX.TO
That CEO has been buying and buying non stop.
Don't try this snake oil pitch. How many of these "assets underground" companies have no so called hedging contracts for their future production.
Go read mild meltdowns of the past where miners have fanciful derivatives that are tied to multiple times of their production. A physical stock of goods girding the pyramid of papers/claims are so well known even to the street peddlers in Shanghai.
In deformed markets with collapsing price discoveries, the daily price of commodites is just the fear and greed nanosecond blips on trading screens.
At least Apple's price can be still discerned by Consumer Behavior.
Most of the miners are a hole in the ground qith a liar on top.
Most of the tech companies are a hole in the privacy laws with a data mining liar on top.
No problem, just print more of the precious ... oh wait.
Instead of killing off 589 jr explorers how about 589 banksters responsible for keeping the gold price below the cost of production?
stateside
And therein lies the rub...
Yikes.
By the time the price of PMs are high enough to extract, the cost basis will have moved up because of the lack of water available. I own junior miners and I hate myself because of it. I figure they need to reach the point of full blown retard before they start going up. A la social media stocks.
< YES
< NO
Finally a good time to buy into the miners
I'm going to wait until miners go down 120% from the 2011 top before I start to do any buying.
Jailing of manipulatiive central bankers and their operatives is actually what is needed for an new bull cycle. In the mean time, I am in and out of them as needed. Switching in and out of NUGT and DUST has been very profitable.
Let's face it, gold is worthless, at least in the US. I would note that talking about a two or three billion dollar working deficit in a world of bajillions seems kind of trivial, especially spread over 600 companies, but apparently shares trading near zero is not yet enough. Let the cleansing begin!
Damn.. I've got 10,000 shares of Arian. The company's way into the red. Bought the shares with dollars... now worth cents.
Not enough people BTFD
Just list them on the Nasdaq!
Ok. How about we conjure up some Mining ETFs or slice and dice their debt into tranches and sell Mine Backed Securities into REITs or something creative?
Financial engineering here! Get your rain soaked money losin' hole in the ground financial engineering here!!
Short miners to the floor, no brainer. Stop buying the fucking dip and maybe you'll have enough money to buy Kraft dinner, Buffet will bank on your stupidity.
No one explains WHO gets title when these mines shut down or fail. That's the very same WHO is artificially grinding the commodity prices down. They want these commodities for themselves later. Which was always the goal of The Great Red Dragon, to"own the earth in fee-simple." Just sociopaths wanting to take everything away from everyone else. Problem is that most folks prefer the sweet lie instead of the glaring truth.
You raise a good point. Do these miners owe money to the same people who rig the prices and would profit from their bankrupcy? I could see them writing a CDS betting on their collapse, trading paper derivatives ( like silver ETFs) and crashing them. They would skim a profit while rigging, collect on the CDS when at default, and maybe own the mining company.
Miners need to be careful who they owe money to.
The other problem is that the compensation structure for mining executives became totally gangfucked. They became iBankers, always looking for the next shitty deal to propel their stock higher etc. Take a look at Barrick...
I'm holding my Comstock Mining shares. Ticker:LODE
They are sitting on 92 tonnes of gold on just 10% of their property explored in Nevada.
Check out the Belo Sun mining chart. it's hammer time, BSX.TO
Shit happens all the time....Park the CAT and close the mine..time to go to the bar.