Ann: Share Purchase Plan and Bonus Option Offer , page-10

re: Ann: Share Purchase Plan and Bonus Option... Suspect cash must be running very low at the moment and that there is little in the kitty beyond the recent $1.3M rebate.

The 2013 annual report indicates that the directors are banking around $1M annually in salaries and fees. If one adds salaries for a further 5 odd geos, some finance and admin staff it is likely that the salary bill must be running close to $2M. The 2013 cash flow statement however shows a number of only $1.3M for suppliers AND employees. My accounting skills are a bit suspect so wonder how this all balances. Is it possible that a lot of the staff costs are accounted for under exploration costs (totaling $3.4M in 2013) suggesting that they are spending less in ground than is claimed? Unless they raise a fair bit of cash soon (or reduce salaries / staff) it is hard to see how they will be able to do any meaningful exploration fieldwork.

There is no information available on the forward budget but based on past financials these may be the fixed annual overheads going forward -
salaries /fees - $1.5M - $2M
Admin expenses - $177K (based on 2013 numbers)
Occupancy / rent - $250K (based on 2013 numbers)
Tenement fees - ??

Burn rate = $2 - $2.5 annually (before any actual exploration expenditure)