$4.3m cap, $7.1m cash last qtr, page-5

This is a real e.g of a companies qty cash flow statement, notice how the Administration cost are only $261,898 and this company is actually doing something.


Consolidated statement of cash flows
Cash flows related to operating activities
Current quarter

$A
1.1 Receipts from product sales and related debtors
1.2 Payments for
(a) exploration & evaluation (544,821)
(b) development
(c) production
(d) administration (261,898)




1.3 Dividends received
1.4 Interest and other items of a similar nature received 19,307
1.5 Interest and other costs of finance paid (2,995)
1.6 GST taxes paid
1.7 Other (provide details if material) 38 438

Net Operating Cash Flows (790,369)

Cash flows related to investing activities

1.8 Payment for purchases of:
(a) prospects
(b) equity investments
(c) other fixed assets (36,937)
1.9 Proceeds from sale of:
(a) prospects
(b) equity investments
(c) other fixed assets
1.10 Loans to other entities
1.11 Loans repaid by other entities
1.12 Other (provide details if material)

Net investing cash flows (36,937)

1.13 Total operating and investing cash flows (carried
forward) (827,306)

My question to MTN is once they start on a new project, you will have double the cash burn,$750,000 admin and $600,000 plus on exploration expenditure costs.
This would place MTN in a cr position much sooner,possibly in one years time,after the start of their first project,if not sooner.
The only way MTN could look attractive is if they were to start resigning 2 thirds of the board,to bring admin cost in line with most other explorers.
This will significantly reduce the cash burn and extend the time frame before the next cr is needed.

If MTN were in control of a proven management team,costing sh $250,000 a qtr, I would consider MTN in a very good position with current mc.

Unfortunately this is not the case and while management are spending sh money recklessly, I don't see much potential at all for mtn,its if Labour were running the show and you know how that turns out.

Just my thoughts,