Ann: Quarterly Report to 31 December 2016, page-6

Quick and Dirty 5B Cash Flow Summary:

The cash position of the company improved last quarter, due to a number of factors:
- $250k reduction of exploration and evaluation outflows compared to previous quarter (and $150k less than budgeted);

- ~$375k reduction of staff and admin/corp costs (~$420k compared to ~$800k previous Q)! This was ~$325 lower than budgeted! Of this, admin costs were $125k lower and staff costs were ~250k lower!

- $257k reduction in loan interest paid using cash. (This is a bit of a reporting fiddle, as the interest was paid, but through an in specie share issue, so not reportable as a cash outflow this Q. The Q interest payments only show up on the 5B if paid using cash, which (rather perversely) is currently generated through issuing new shares, anyway. It simply becomes a question of whether the shares were issued directly to Jefferies (in specie) or whether cash was used from the proceeds of larger CRs.)

These reductions in outflows resulted in a reportable cash outflow improvement of ~880k .

When the $500k option premium (inflow) from KDR is included, the net improvement in this Q's cash flow grows to ~$1.35M ($825k cash burn for Q4 compared to $2,181k for Q3).

And it's now clear why there was no CR in Dec.

So, with ~$2.78M cash on hand currently (i.e. $2.24M as at 31 Dec + $540k ATO refundable tax offset received earlier this month), the CR pressure in the near term appears to have eased, but not entirely for the March Q as a whole.

I'm assuming that Jefferies were paid in cash earlier this month (for Q4, 2016) because I would have expected to see a 3B for that by now, if in specie payment was chosen.

So, to summarize, I'd say there's probably ~$1M (give or take a coupla of thou) to be raised this Q, in order to maintain a March EOQ cash balance of ~$2M. They may go lighter if sentiment deteriorates or slightly heavier if it improves.

Just my thoughts...