The tale involves Pathfinder Minerals, the Mozambique-based mining company at the centre of a bitter row between a local general and the company's management team.
Well, somebody on the LSE forum has just spotted some rather worrying piece of prose in the company's latest annual report.
Here is the link to the thread - http://www.lse.co.uk/SharePrice.asp?shareprice=PFP - and I will paste the relevant paragraphs below:
"EVENTS SINCE THE END OF THE YEAR
And within the Annual Report the company auditors, Chapman Davis, go on to write:
In forming our opinion on the financial statements, which is not qualified, we have considered the adequacy of the disclosures made in the note 2 to the financial statements and in the Directors’ Report concerning the Company’s ability to continue as a going concern when taking into account the contingent liability in relation to the ongoing VAT enquiry disclosed in note 16.
Pathfinder Minerals Plc – continued
The existence and materiality of the contingent liability in relation to VAT repayable cast significant doubt about the Company’s ability to continue as a going concern in the absence of further funding. Uncertainty therefore exists concerning whether the Company will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial statements. The financial statements do not include the adjustments that would result if the Company was unable to continue as a going concern."
So, whilst it's great to see a genuine scoopette revealed in a chat room by day traders, I guess it's a shame (for them) the news may actually result in them losing a packet!
A spokesperson for Pathfinder Minerals declined to comment.