end of the day its price fell down over 28% to close at $0.38 per share. Unlike the price, the volume of SRCH exceeded 947 thousand shares traded, which is quite an unusual value for the stock.It seems that something strange is going on with Searchlight and the investors have been losing interest in the stock.[BANNER]
Searchlight Minerals Corp. is an exploration-stage company engaged in the acquisition and exploration of mineral properties and slag reprocessing projects. The records point that recently the company has been holding its high positions through stock promotions and positive announcements, though the price is now moving down.
Yesterday, SRCH was promoted by the well-known ShamrockStocks.com. Today, the company published a press release on its financials and on its Clarkdale Operations. According to the announcement, SRCH has experienced some difficulties with this project, but keeps focusing its efforts on it.
By the end of June, SRCH has increased its revenue as compared to the previous period, though its operating expenses almost doubled and went over $2 million. SRCH has also incurred a big net loss.
Searchlight still has more assets than liabilities on its balance sheet, however, the corporation should cover its operating losses. As claimed in its financial report, “The Company incurred cumulative net losses of $19,788,324 from operations as of June 30, 2010 and has not commenced its commercial mining and mineral processing operations; rather, it is still in the exploration stage, raising substantial doubt about the Company’s ability to continue as a going concern”.
Keeping in mind these facts and the current low trade of SRCH, we can only repeat the conclusion in SRCH report: “The ability of the Company to continue as a going concern is dependent on additional sources of capital and the success of the Company’s plan”.
