Ann: Quarterly Activities and Cash Flow Report, page-114

Gee mate, if they have purchased assets (tenements/projects) and have hidden them in our Operating Activities/Administration Costs it's best we report them to ASIC/ASX. In fact if it's true I'll send the email of on Monday.

The following links will help with the interpretation of an Exploration Cos Quarterly Activity Reports.

https://www.freshequities.com/resource-centre/what-is-a-quarterly-cashflow-report-appendix-4c-5b

https://www.selfwealth.com.au/blog/how-to-interpret-quarterly-cash-flow-reports-also-known-as-appendix-4c-or-5b/

Just replace the businesses in 2.1 (b) & 2.2 (b) with tenements as our EVR Management have done. That's where our Projects/Tenements should be allocated in the Quarterly Activities Statement not in our Operating Cashflow. A Project/Tenement is an Asset not an Operating Expense.

Let me know if you believe our Directors who have a vast background and experience in high end Accounting & Investment have got it wrong. If they have then we should definitely report them to ASIC/ASX.

Have great weekend mate but please let me know your thoughts as I'm happy to report any ASX Listed Co who are "cooking the books". Especially if I'm invested in them.


See below:

Who must release Quarterly Cashflow Reports?

There are 3 different classes of entities that each must submit Quarterly Cashflow Reports to the ASX:

- Mining exploration entities (Appendix 4C)

- Oil and gas exploration entities (Appendix 5B)

- Commitment test entities* (Appendix 4C)The ASX requires exploration entities to continue producing Quarterly Cashflow Reports while they continue to be mining exploration entities, with the obligation ceasing once they transition to mining producing entities. For commitment test entities, the ASX requires this rule to apply for at least 8 consecutive quarters, with discretion to extend the requirement longer on a case-by-case basis. These reports must be submitted to the ASX within one month after the end of the relevant quarter or face suspensions of their securities from quotation.The ASX also has the power to ask any other entities to publish Quarterly Cashflow reports for a set period under Listing Rules 4.7B and 4.7C.

Reading a Quarterly Cashflow Report

Operating Cashflow

Operating cashflow refers to the receipt and payment of cash incurred during the normal course of business. This segment does not contain items relating to the long-term capital expenditures or investment transactions. A positive operating cash flows figure indicate that the core business activities of the company is strong and that the company is generating cash from existing operations. However, it is often normal for exploration entities to have negative operating cash flows as the nature of their business often provides no cash receipts until they transition to a developer. For mining companies, investors should pay attention to the exploration and evaluation expenditure to assess how much the company is paying for exploration related activities.

Investing Cashflow

Investing cashflows are cash flows related to the acquisition and disposals of assets relevant to the business. This can include capitalised exploration expenditure, purchase of physical assets or acquisition/disposal of companies or securities. Growth companies often exhibit negative investing cashflows as cash is invested into assets to support long-term growth. In these cases, the company will seek to monetise the investments in the future and recognise a benefit to shareholders. An example of this may be the acquisition and disposal of some mining tenements or projects.