Ann: Quarterly Cashflow Report - Dec 2023, page-2

Going to drop my thoughts on the cashflow report

**Forensic Analysis:**
1. **Cash Position:** - Cash and cash equivalents at the end of the current quarter: $3,510,000.
2. **OperatingActivities:** - Net cash used in operating activities: -$325,000. - Mainly influenced by payments for staff costs, administration, and corporatecosts.
3. **Investing Activities:** - Net cash used in investing activities: -$1,409,000. - Major outflows for exploration and evaluation, indicating substantial investment in the core business.
4. **Financing Activities:** - Net cash from financing activities: +$3,456,000. - Mainly proceeds from the issue of equity securities.
5. **PaymentstoRelatedParties:** - Payments to related parties: -$110,000. - Understanding related party transactions is crucial for transparency.
6. **Financing Facilities:** - No outstanding loans or credit standby arrangements. - Total financing facilities: Nil.

**Catalyst Concerns:**
1. **Negative Operating Cash Flow:** - The company is using more cash in its operating activities (-$325,000), raising concerns about its operational efficiency and sustainability.
2. **Heavy Investing Activities:** - Substantial cash outflows in exploration and evaluation (-$1,409,000) may indicate aggressive expansion plans or high capital expenditure, warranting attention to project viability.
3. **Reliance on Equity Financing:** - The significant positive net cash from financing activities is driven by proceeds from the issue of equity securities. The company's reliance on equity for funding could dilute shareholder value.

**Rundown:** - $NIS maintains a reasonable cash position. - Concerns arise from negative operating cash flow and heavy investment in exploration. - The reliance on equity financing suggests potential dilution for existing shareholders. - Investors should monitor the company's ability to generate positive operating cash flow and manage its exploration investments effectively.