Silver Falcon Mining, Inc. (OTC:SFMI) has been jumping up and down at full speed lately. After the price fall last Friday, 
yesterday the stock hit a 18.75% gain on a traded volume exceeding 1 million shares.
Looks like the massive trade is already on, though the reason for the climb cannot be found yet.
Following the records, Silver Falcon has not released any news on its operations these days and no one has a clue about its current activities. The last announcement by the company came up on Feb 15 when SFMI reported that in end-December, 2011, D. Roger Scammell resigned as a director of Silver Falcon due to his decision to retire. It is interesting that Mr. Scammell remained a geological consultant to SFMI but the reasons for his resignation as a company’s director were not revealed.
Since this news was announced, no other data on Silver Falcon has been released.
Silver Falcon Mining Inc. is a company specializing in gold and silver properties. Last month, the company’s stock hit a new 52-week low, though the share price increased in a while. Unfortunately, the financials of SFMI don’t look promising at all.
As of September 30, 2011 the company’s liabilities jumped up, as well as the net loss that reached over $8 million. In addition, the accumulated deficit totaled approximately $26 million, and the revenues were still missing.[BANNER]
Silver Mining has remained in business primarily through the deferral of salaries by management, the issuance of stock to compensate employees and consultants, and raising funds from the sale of two year convertible notes. However, the company’s cash and cash equivalents consist of all cash balances and highly liquid investments with an original maturity of three months or less.
The only option for SFMI is to find additional financing from its old sources, until such time that funds provided by operations are sufficient to fund the company’s working capital requirements. However, this cannot be guaranteed.
All the above-mentioned, among some other factors, raise substantial doubt about the ability of SFMI to continue as a going concern for a reasonable period of time.
