Nelly Shishkova

Can Energizer Resources Inc. (OTC:ENZR) Hold the Climb a Bit Longer?

by Nelly Shishkova May 26, 2011
Energizer Resources Inc. (OTC:ENZR) is surging up these days. Yesterday, the stock switched to the massive trade by ENZR_chart4.pngincreasing its stock price and trading over 1 million shares on the market.

The only reasonable explanation on the recent gain appears to be the latest news by Energizer. A couple of days ago, the company reported that a group of high-level Madagascar government officials, including the Prime Minister, visited its Green Giant Vanadium Project site located in south-western Madagascar. The prestigious delegation followed Energizer's successful participation as a gold-level sponsor in Madagascar's first International Mining and Hydrocarbon Fair, which gave additional credits to the company.

Obviously, the positive announcement intrigued investors and ENZR started to climb up at once. But how long will the up move continue?

Energizer_Res..pngLooks like the company is trying hard to secure its market position by adding more positive facts in its press releases, though its financials don't seem much inspirational. Despite the fact that ENZR has more assets than liabilities on its balance sheet, as of March 31 this year its accumulated during exploration stage period deficit went over $50 million. At the same time, the expenses were significant, while the revenues pointed zero.

As claimed in its 10-Q report, due to the huge accumulated losses and risk factors, there is a substantial doubt regarding the company's ability to continue as a going concern. Meaning that until Energizer finds a way to raise additional capital, its future will remain questionable.

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