Ann: September 2012 Quarterly Report , page-6

Hey guys, I watch AXM from afar. I hold BLK which in the past has mentioned there might be some kind of toll treatment deal. (I am doubting this will come to anything whilst the company is in such difficulty).

Things are looking grim to say the least for AXM after reading the quarterly.

Also, today a director is resigning as of today... abrupt to say the least. It states - "was appointed as a Non Executive Director on 6 May 2011 and has been assisting the Company to implement its turnaround strategy."

Pretty sure there is still work to be done... so why is he leaving at what is surely a critical time..?

They are forecasting $26 million in estimated cash outflows for the coming quarter. Considering that costs have risen since the quarter before and grades have reduced, I really do wonder if this is the last hurrah.
Out of that $26 mil, $4.8 is not related to production which seems pretty high too.
So I think that at around $1650 au per ounce, they will need to produce at least 5700 ounces per month to ensure they at least break even. Now that alone looks difficult considering over the past 9 months at no stage has the company ever reached that level of production..
This is going by the recent company update, which had graphs on the quarterly's.
March quarter ave monthly - 2100 ounces
June quarter ave monthly - 3000 ounces
Sept quarter ave monthly - 3740 ounces

That means, realistically to break even, they will need to, as of now, increase production by %66. Tall order.

They also have some debt, but I found it hard to understand how much. I know there is a $4 million fully drawn facility, but I remember reading about more somewhere..??

Can anyone shed light on the reduction on the %100 held tenements mentioned in the quarterly?

I genuinely feel for holders, after my recent disaster with NMG, I know the type of spin that can be spun.

I am interested if anyone thinks that management have any idea's how to rescue the company? Obviously without a large cash injection the company may going under.. the question I keep wondering is who...