Ah - accounting, how easy is it not to make things look better than they are. Quite unbelievable that the 4 directors can make a statement like - "we believe the Group is in a stable financial position". Here is my take on the what the balance sheet really should look like:
Assets
Cash + equiv 198K
Trade + receiv 69K
Financial assets 800 (used 6.5c / share for interest in OGX). Current price is 7 but on very low volume.
Plant 38K (who knows what this is - probably some old office equipment so meaningless)
Inv in TRF 431K (was valued at 3c /share which is not the current value. Current P is 2c but calculated at 1.5C
Expl + eval cost 0 (accounts show this as 1.98M. My view is that this is not a real asset if you have spent it on no-value adding research and exploration). No buyer would give them a single cent credit for money spent on chasing no hope projects all over the show.
TOTAL ASSETS 1,53M
Liabilities
Trade + rec 407K
Prov 231
TOTAL LIABILITIES 638K
Net Assets 892K (divided by 124,866,562 shares on issue) = 0.007c/share
TRF on its own is dead in the water. No wonder the directors are going for a restructure. Assume there is no more big rebates in the wings for TRF so would imagine that the 198K cash will be gone in months (that number was December so probably close to a 1ooK by now). The only way to string it out further would be to sell off some OGX (or restructure).
The plan now is probably to merge the entities - spend the IFE rebate and then hope and pray that they can convince someone to pump in a few $. Is going to be a close call! The word stable is certainly a bit of a stretch.
TRF Price at posting:
2.2¢ Sentiment: None Disclosure: Not Held
