Good post long time. The quarterly reports are very misleading in the conclusion they draw about how long the cash will last in a situation where a developer company is part way through a development programme and the capital expenditure component of cash out flows is on going and funded from cash at bank.
The quarterly operating cash flows of $4.6m increase to $14.5 M when you add the capitalised development costs which drops the length of time cash will last to 2 months.
When you analyse the forecast inflows and out flows at current prices and allow a bit of cost increase it's a no brainer that more equity or some debt is necessary to get to 40% capacity . Its now evident a bit of short term debt wasn't the option chosen.
The board continues to proceed with utmost caution which, in an environment
where there are a lot of geological assumptions driving the forecasts, is a good plan.
Let's hope the punters aren't too negative about the prospects.
