North American Tungsten Corporation Ltd. (CVE:NTC) (PINK:NATUF) had their share price spiking after the company published financial results for the second quarter of 2011.
NTC share price jumped 13.8% on Thursday supported by a trading volume of 4.5 million or 14 times the average of 314 thousand. This significant improvement in liquidity and buying pressure was a result of semi-positive financial results for the latest quarter.
Yesterday, Tungsten published unaudited interim consolidated financial statements for the period ended June 30, 2011:
- Sales totaled $19.3 million;
- Net profit was $1.3 million compared to $2.4 million loss in Q3 2010;
- Ended quarter with working capital deficit of $11 million;
- Supported operations through borrowing on operating loan;
- Had a negative net cash flow of $3 million, which was even offset by borrowing $6.5 million on the mentioned loan;
- Increased production to 74.6 thousand mtus of WO3 over the quarter, nearly doubling from Q2 2011.
Despite the fact that Tungsten is struggling to secure working capital for their operations the situation is getting better in general. The company has $2 million left usable under their $8 million operating loan facility. Tungsten also has five outstanding equipment loans, totaling around $7.4 million. By June 30, 2011 these loans balanced $6.9 million.
