Ann: Broad High-Grade Gold Mineralisation Grows Crusader-Templar, page-31

Hi @Student,
The March Quarterly report includes expenses incurred from Jan 1st - March 31st.

The ASX requires reports to be released to the market prior to open on the first day of the second month following the quarter. I.e. the March quarter must be released prior to open on the 1st of May.

In the case of NXM, they released their 5B on 19th of April. This report showed $4.4m was spent in the reporting period (1/1/22 - 31/3/22) and that there was $17m left in the kitty (3.9 quarters at the current burn rate. Item 8.7).

On the 25th of January 2022, NXM released an update about Wallbrook that stated activities had recommenced. In that ann it states that 3 rigs (2 RR and 1 DD) were on site.

The ann released on 31/3/22 states five rigs on site (3 RC and 2 DD).

If we assume a 30 day turn around on the payment of invoices, you could assume a payment was made sometime in February and again in March; the first being smaller than the second, as there was a shutdown period for Christmas and into the new year. $4.4m would be consistent with what Andy stated.

If we take what Andy has stated as true (and there would be no reason to question him imo), then the June quarterly (released by 1st Aug 22) should show roughly $7m left (assuming the stated cash burn includes wages, lab work etc.) then i calculate that the June 5B (released by 1st August) will show 0.7 quarters of funding left. (Item 8.6 ((funding available (((17m-10m = 7m))) divided by item 8.3 ((outgoings ((($10m))).

That being the case, what are the possibilities?
Just thinking out aloud here:

1. Continued good/great results = increased sp and easy CR.
2. Continued good/great results and some vultures may start circling. Takeover offer = increased sp.
3. Strategic placement/JV to Sophs or Cornerstone investor (NST?) This presents a good way to get a big chunk of a company without pushing the sp north.

NXM have no substantial shareholders.
NXM have ~288m SOI
The largest percentage a substantial holder can hold is 19.9% or roughly 57.3m shares with the current SOI.

WRT a CR. The maximum shares that can be issued under LR 7.1 without shareholder approval is 15% (~43.2m shares) and under LR 7.1a a further 10% (~28.8m) = total 72m. That would take the total SOI to ~360m.

NST already hold 6.6m shares so that means they could increase their holding by roughly another 50.7m shares.

Edit: Umm no perdant, the total SOI assuming they used all their capacity would be 360m. 19.9% of 360m = 71.6m so NST could potentially hold that figure).

So lets just hope that results continue to be strong and NST want a piece of the action because in the time i did all these calculations the market has opened and we're down another 3.5%

All the best,
Perdy