The figures below represent by best efforts to evaluate the spending by wpx for the quarter ended march 2013. I can't figure it out to the exact cent, but I think I have it to within $9,000 .
As of march 31st 2013 they had cash of $963,016.
The total general and administrative expenses for the 3 months was $1,896,599.
They also had a figure of $1,848,036 under investment activities.
They also had a figure of $147,090 as an income loss.
So the total of these figures = $4,854,741, which is very close to the $4,846,429 they had at December 31st 2012.
Investments totaled $1,848,036 as at March 31, 2013 compared to 1,181,236 as at September 30, 2012. The $666,800 increase reflects an increase in the Company’s investment in its Discovery Harbour Resources Corp."
It seems from the above statement that they have been continuing to invest WESTERN POTASH's SHAREHOLDERS MONEY into other companies such as Discovery Harbour Resources Corp.
So the question that everybody should be asking is why, if this is the case, are management investing such large amounts of money in other companies when Western Potash is running out of cash?
My opinion on this, and it is only my opinion is that there are 2 possible explanations for this?
1) they are sure that Wpx will be successful and they can raise cash or attract a deep pocketed investor.
the second reason is the one I subscribe too.
An analyst recently cast doubt over wpx's ability to find a strategic investor or buyer. His reason was that the milestone project had been well looked over by many partners for several years and no one has yet stepped up to the plate.
And coupled to that you have the massive cost increase to $4.1 Billion in the "identical" K&S legacy project which in my opinion would scare off the most aggressive potential buyer/partner.
2) So my opinion in light of the above is that management are open to the possibility that this project will not be able to raise debt financing, attract a strategic partner or be bought out.
And the reason for the investment in unrelated companies such as Discovery Harbour is to try and create value for shareholders and management in the event Wpx does not succeed in attracting investment for milestone.
If this plays out the way I have posted here, nobody can say the writing was not on the wall.