The cash position reported by companies in their quarterlies is always the upside case as it does not reflect invoices yet to be paid and invoices yet to be issued (for activities completed). So the real accrual position is lower than the reported cash position.
In RXL's case they now have a promising nickel discovery to drill out, with a geophysical survey in progress. This will all take a good lick of cash to deliver.
RXL have a good story to tell now and if they are worth their salt they will use this time to raise a good sum and put themselves in a position to drill a decent number of holes before they have to return again to the market.
I would be very surprised if we dont see a placement before the next drill program.
A "Certainty".... ? A very high chance anyway.
So as a non-holder of RXL I will let this uncertainty roll out over the next few weeks as a capital raising nearly always has a discount with some downward pressure on the share price...
ACTURTLE
RXL Price at posting:
6.5¢ Sentiment: ST Buy Disclosure: Not Held
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