Criticism

The one big change in the company outlook is expressed in the liquidity outlook. You won't see any remarks about going concern risk.

"Liquidity Outlook

Liquidity risk is the risk that the Company will encounter difficulties in meeting obligations associated with its financial liabilities and other contractual obligations. The Company’s strategy for managing liquidity is based on achieving positive cash flows from operations to internally fund operating and capital requirements. Material increases or decreases in the Company’s liquidity and capital resources will be substantially determined by the success or failure of the Company’s operations, exploration, development and construction programs, its ability to obtain equity or other sources of financing, and the price of gold.

The Company monitors and manages liquidity risk by preparing regular, periodic cash flow forecasts, and seeking flexibility in financing agreements. In today’s metal price environment, the Company anticipates that funding from operating cash flows should be sufficient to fund the Company’s working capital requirements and capital expenditures.

Cash flow provided by (used in) operating activities will vary depending on the prices of gold, total production and the extent of expenditure on mine development and other capital projects during the year. The Company expects to generate positive cash flow from operating activities over the next year achieved through strong production results at the Roy Lloyd mine and Jolu mill."

If the production results are so "strong" why are the financials so "weak."

imo, the company was appraised of a hostile bid in October of 2011. This was right after the sched 2 of the MMER was modified to allow the long term use of the Mallard TIA. The company reacted by arranging a financing with Sprott, which would discourage any potential investor, and also the tabling of financial results very quickly. There would have been no other reason why they would do so. Personally, I would have liked to see the bid and allowed to make a decision to divest my shares on my own.

So we are back to equipment failures not reported to the end of quarter and watered down numbers. Would I ever love to see Bill Harris of Avenue Investment Management tear the lid off this can of worms.

Cash From Operations

The only number that seems to match up is the Cash From Operations, which is exactly on the money, despite mysterious equipment failures not reported until the end of quarter: $5,759,803