Analysis and evaluation of an Australian resource company Essay - 1

Analysis and evaluation of an Australian resource company - Essay casefulBut its mining operations only started in 2009 which initially produced 2,465 ounces of coin and 1,468 oz of silver amounting to $3,378 million (A1, 2011). It claimed that its producing gold at average of 450 gold per week and 400 of silver (A1, 2011).The companies have built its facilities with promise team of engineers to enhance its working environment as it worked with mining contractor Watpac that is gauging its credibility on Brightstar device to get into Western Australian gold mining circles (A1, 2011). It also used its facilities to accommodate workers and contractors, some of whom operates on fly-in, fly-out schedule. Facilities installed are modern communications, a laboratory and a gold room (A1, 2011). A1 targeted to open four minefields they coded as Alpha, Beta, delta and Epsilon. The sum total area is 1,559,054t at 4.2g/t ore (A1, 2011). The company perceived at draw ining about 4,915, 879 g rams of and gold (in situ) and hope to estimate to get 150,164 ounces of gold (A1, 2011).The company has transparent pecuniary policies, accounting of renumeration, and stocks shares (A1, 2011). It accorded independence of meeter in the evaluation and accounting of its finances. However, it is interesting to note that its consolidated financial report reflected huge losings of $5,900,505 in 2010 and $4,282,979 in 2009 compared to its declared income/revenue of $ 2,769,155 (2010) and % $ 199,062 in 2009 (A1, 2011). The management further declared that they suffer financial setback with $6,047,861 deficiency of working capital (A1, 2011). It is further affirmed that the company need to gather more(prenominal) capital to fund its consolidated operations, exploration, and assets management (A1, 2011).The management hope to undertake aggressive exploration to extract in an open-pit method the mineral reserves in Australia of about 20M oz in Laverport region and in early(a) significan t regions. Last year, 2010, A1 sold its northern gold prospect to Regis Mining,