cash position, page-9

IMO it is bend over time for Elk shareholders again with more dilution coming in the form of another capital raising.

There are a number of reasons for my opinion:

1. There was an investor presentation on 19 September.

2. This was followed by another one of those famous research reports commissioned by the company and released on 25 September.

3. The Annual Report released on 28 September shows cash on hand as of $2.5 million as of 30 June. The Investor Presentation dated 19 September shows that the cash is down to $1.5 million and that debt was at $600,000.

The current liabilities are some $500,000 more than current assets when adjusted for environmental bonds leaving about $2 million as of 30 June.

Elk burns through cash like no other company for admin and employee costs. Using a low $200,000 a month for September leaves them with about $200,000 in net cash.

Ash Creek needs funds and I wonder how much has been spent on that over the past month along with other studies and reports......

IMO it appears that Elk's cash is just about gone.

4. The huge increase in the Elk share price since the middle of August in combination with the above IMO is suspicious and IMO a set up for a capital raising.

So based on the above there will be a capital raising done at a disocunt to the current hyped share price.