As expected, things are not going well at Liberty. And the stock price reflects that. The company seems to have as many losses when its producing than when its in care and maintenance.

The only thing that keeps this company going is the constant loans provided by JJ. Of the $20,000,000 extra line of credit that was given we saw last quarter $8,000,000 of it advanced. After this report a further $3,400,000 was provided. I was hoping to see the majority of that "extra" loan applied to Hart's capital development, along with some cash flow from operations.

I was also mistaken before about the preferred shares owned by JJ. Yes, they promise not to convert them into common shares, thus not wiping out existing minority shareholders. However Liberty Mines still has to buy back almost 150,000,000 of these at $.11 each. Sad considering that the shares are trading at a discount to that committtment. Thats roughly an extra $16,500,000 of hard cash that needs to be earned by Liberty to pay that off. Besides all the new and ever growing debt.

I also looked at the resource/reserve estimates that the company provided. Doing some quick math I don't think there is even enough ore in the ground to pay back JJ all of its obligations and liabilities.

And when you consider how those numbers include Hart, which has not even started, and how the reserve numbers proved lower than first provided by SRK at McWaters, well....

Do your own DD and lets hope that the tailings pond does not have to be re-built. Further delaying any hope of the mill to start running again. And with winter around the corner.

As the company spells out in black and white, further financial assistance may be required.