Cadre Resources Files Interim, Unaudited Statement With SEDAR

The financial statements of Cadre Resources Ltd. [NEX: CSL.H] for the third quarter of this fiscal year, ending July 31st, have been filed [PDF file], as well as an accompanying Management Discussion and Analysis (M D & A.) The balance sheet shows cash in the amount of $34,830, up from $2,631 as of the same time last year, even though there is a working capital deficit of $704,736, down from a deficit of $666,682 in the same period of last year. A $74,095 increase in accounts payable explains the increase. $376,719 of the $706,060 in accounts payable, up from $277,558 as of the same period last year, are owed to "former directors and companies controlled by directors of the Company."

Book value is negative: specifically, -2.36 cent/share, down from -2.21 cents/share as of the end of the third quarter of 2006. Cadre had no revenue to speak of, at least since the first quarter of 2006, and its quarterly loss for the third quarter of this year widened, even though the loss for the first nine months of this year shrunk somewhat as compared with the first three quarters of last year. The only two expense items that have grown in the 9-month period of this fiscal year were "Office and miscellaneous" and "Shareholder costs and listing fees;" all others have shrunk. The cash increased not only due to $10,000 in share subscriptions, but also because of a $8,760 gain in "Mineral concession expenditures" and a $1,533 gain in "Fixed assets" for a total gain in cash of $10,293 in the "Investment Activities" part of the cash-flow statement. This is unusual, not only for Cadre but in general; normally, investments activities sop up cash. Cadre is also in the middle of a private placement, from which $138,500 has been advanced subsequent to July 31.

According to the M D & A [PDF file], Cadre is primarily in the aggregate business, although the property it's exploring in the Bolivar States in Venezuela does hold potential for "sand & gravel bearing gold, diamonds, and titanium." The company's in the middle of a Feasibility Study of the property it has the right to explore. The M D & A further says, "[The Venezuelan a]uthorities have described the proposed project as a `Project of National Interest', friendly and `precedent setting'. [It also says that the plan has been presented to high-level Venezuelan officials, including Presiden Chavez himself, and they're smiling on it.] Such statements are reassuring and indicate full and final permitting will be forthcoming. Additional funding is required to complete the final stages of the BFS [Bankable Feasibility Study]." The BFS has not been initiated yet.

Cadre Resources didn't trade on Monday. Its last close was on September 12th, at 5 cent/share. Its 52-week low is 4.5 cents/share; its 52-week high, established on October 4th, 2006, is 12 cents/share. The stock trades infrequently.