When we last covered Legend International Holdings, Inc. (OTC:LGDI), it had set out on a dismal journey to hitting new lows on the charts. Now, it is pretty obvious that, for the last 30 days, the company has failed to buck this trend.
Yesterday, LGDI was subject to increased investors’ interest which led to a total of 1.38 million shares changing hands. The huge volume, in turn, caused a slight depreciation of the value of LGDI stock as the latter went down 13% to $0.20 per share. This scenario wouldn’t seem so bad if it hadn’t actually caused a new 36-month low for the company.
LGDI’s latest PR saw the light of day on Nov. 8. The company issued the update to inform investors of its corporate strategy with regard to the prospective production of phosphate rock. The news was met with a positive investor response and LGDI subsequently went up 15%. A day later, i.e on Nov. 9, LGDI filed a comprehensive 10-Q report for the third calendar quarter of 2011. The document, which was prepared in Australian dollars (AUD), revealed that LGDI’s financial condition as of Sep. 30 is determined by:
- cash reserves of AUD 4 million;
- working capital surplus of AUD 4.7 million;
- net quarterly loss of AUD 7 million.
Although LGDI’s assets currently exceed its liabilities, the company will continue to incur substantial losses on a quarterly basis until it starts generating revenue. To do so, it must begin production as soon as possible. However, this will hardly happen within the final quarter of 2011.
