In those days, AWSR was flying up not only supported by a promotion. Coal prices also noted new highs. Now, the "background" is different. This month, coal prices pull back. In addition, a few weeks ago America West Resources, Inc. announced its annual report or the fiscal year ended December 31, 2010. It may bring investors some optimism, but also raise questions related mainly to the company's debt and liquidity matters.
The statement of the company's management that there can be no assurance that AWSR will have a gain from operations or net income in fiscal 2011 or thereafter presents the other side of the $1 worth stock. AWSR reported also coal sales of approximately $10 million, net loss of approximately $16.1 million and a working capital deficit of approximately $30 million.
The agreeable news was that the company reported approximately 12 million tons of remaining proven reserves of recoverable coal at its Horizon Mine, which are anticipated to take more than 30 years to mine at the current production rate. AWSR reported also the initiated aggressive expansion program at the Horizon mine.