If you have already come across the latest advertising e-mail in support of Sierra Resource Group Inc (OTC:SIRG), then you must have got acquainted with the promoter’s conclusion that SIRG stock could either jump up or sink abruptly down. Of course, the ultimate goal of the e-mail is to realize the former scenario. However, is it bound to succeed?
As seen from various sources of information in pennystockland, SIRG has not issued any corporate updates for more than three weeks now. Therefore, the latest current piece of news stretches back to Jun. 17 when SIRG proudly announced that BoD member Luis Munoz had been taken on by the Equadoran government in the capacity of top legal advisor, who will be responsible for providing legal counsel to state-owned companies.
Marketwise, the impact of the aforementioned update on the market was slim to none. Yesterday, SIRG stock registered a third negative performance in a row. This time, it lost 7% in value, closing the session at a six-month low of $0.0123 per share on a volume of 1.813 million shares, which is SIRG’s second highest score for the last 6 months. In an attempt to grind the free-fall to a halt, third parties have now joined forces by pooling as much as $16,700 into a paid promotional campaign. The first tranche of the compensation package, i.e $4,700, has already been wired to the promoter, while the second (and much larger) one is expected to be transferred by the end of the year.
As an enterprise occupying the mining industry, SIRG specializes in exploring, discovering and developing gold, silver, copper, as well as other mineral resources. So far, the company has acquired interest in the Arizona-based Chloride Copper Mine property. As far as its PR policy is concerned, SIRG has maintained a fairly transparent financial profile, hence its OTCQB status. In this respect, a brand-new 10-Q surfaced in mid-May outlining the first calendar quarter of 2011. As of Mar. 31, SIRG came up with:
- cash reserves and total assets in excess of $16 thousand;
- negative working capital beyond the $1 million mark;
- zero revenue and a net loss of more than $0.5 million.
Although it takes quite a while before mining companies start generating profits, the current financial picture behind SIRG shows little light at the end of the tunnel. Nevertheless, the company still stands a chance of striking it rich provided that it comes across large deposits of precious metals in due course.
