Someone asked the same question on the comments for the article....

Someone asked the same question on the comments for the article. His reply was...



Comments 4

h_oliver88
Comments342 | + Follow
Peter!
I am just curious why you think the funds wouldnt be enough to the BFS and if its so how much they are missing from that money?
I am just curious because in a previous presentation it been stated when all the option will be excercised there will be some ~23 M AUD in the company account and that will be enough for the DFS. Meanwhile only 90% of the options been excercised i dont think think that we really in short of funds and if its so nothing by a serious margin. Appreciate your answer
14 Aug 2018, 09:29 AM Reply3Like

Peter Arendas, Contributor
Comments1116 | + Follow
Author’s reply » As of the end of Q2, Ardea held A$19.2 million. In Q2, A$5.119 million was used in operating activities (A$4.336 million directly on the feasibility study and development). If this cash burn rate continues, Ardea will be out of money before the end of Q2 2019. Moreover, even if the expenses decline in the coming quarters, Ardea will need some additional money in order to maintain a cash reserve.
14 Aug 2018, 04:47 PM Reply0Like

h_oliver88
Comments342 | + Follow
Well, as you might know very well cash burn is not equally distributed in a DFS work. But surelly, if the burn rate continues surelly wouldnt be enough... However as i see some other companies with similar size of resources dfs work cost somewhere in the order of 20-25 million?! Please help me there.. Also ardea stated during the PFS work that some of the work there including drilling is already been done for the DFS not only for the PFS.
Since ardea stated earlier that their DFS cost will be approximetly ~20million (which is something you can estimate with good accuracy before hand unless some big discovery require additional drilling) curious what is your estimated cost for their study to be done. Find at the first page our management estimate from september ttps://ardearesources.com.au/downloads/presentations/arl_p2017091501.pdf, meanwhile also just reccently stated in one of the reports: all ongoing activities are well funded.
14 Aug 2018, 07:38 PM Reply0Like

h_oliver88
Comments342 | + Follow
About cash reserve after the DFS dont need more than 1-2 million? Most of the workers been hired only for a period of the DFS on contractual terms.With the rest of the personels not having crazy salaries.
At this moment the company have several employee with paychecks to pay,but once the DFS done the company monthly expenses will drop to 1-200 000/month?! I dont see why they would need more than 2 million cash reserve as they dont have much ongoing expenses after the DFS done. As far as i see the management communications earlier our DFS is funded,i think at this point we have no reason to assume otherwise. Caution never a bad thing,but costs have a good predictability in such works and might ardea already have locked down fixed cost to everything which have to be done.