Re: From TLM Conf Call....
in response to
by
posted on
Mar 05, 2009 01:53PM
(Edit this message through the "fast facts" section)
Clint008
The company uses financial instrumenst. If it's something about reliability and shareholder protection, you can read the last SEDAR from the 2nd this month. I just post pg 14 (they have obligations):
The fair value of marketable securities is determined by the closing trading price per share as at the balance sheet date
multiplied by the number of shares. Questerre’s line of credit bears interest at a floating market rate. As at December
31, 2008 the company has no amounts outstanding. As at each reporting period, the Company will assess whether a
financial asset, other than those classified as held-for-trading is impaired. Any impairment loss will be included in the
earnings for the period.
12. Capital Disclosures
The Company believes it is well capitalized to weather the current volatility in financial markets with positive cash flow
from operations, no debt and a working capital surplus of over $50 million consisting mainly of cash.
The majority of planned capital spending in 2009 will be incurred in Quebec and is in part contingent upon the results
of the pilot programs conducted by Questerre’s partners. The Company does not currently anticipate using its line
of credit to fund capital expenditures in 2009. The line of credit is believed to provide adequate contingency for
unanticipated changes in capital spending or market conditions.
The recent change in commodity prices will have a material impact on Questerre’s cash flow from operations. Questerre
attempts to mitigate the effect of lower prices by shutting in production in unusually low pricing environments and
reallocating capital to more profitable areas or reducing capital spending based on results and other market
considerations.
The Company considers its capital structure to include shareholders’ equity, bank debt and working capital. The
Company will adjust its capital structure to minimize its cost of capital through the issuance of shares, increasing its
bank line of credit and/or adjusting its capital spending. Questerre monitors its capital based on the current and
projected cash flow from operations.
And:
Questerre’s objectives in managing its capital structure are to:
1.Create and maintain flexibility so that Questerre can continue to meet its financial obligations; and
2.Finance its growth either through internally generated cash flows, joint venture relationships or asset/corporate
acquisitions which are financed primarily through share issuances.
The Company’s capital is not subject to any external restrictions as to how capital is deployed nor does it have any
financial covenants in respect of its bank credit facility.
And like others say, you can mail the company.