$3 million cash at 30/09/2011- all cash from AU and SPP already received.
Estimated spendings for Q4 2011= $1.25 mill, as per estimate stated on announcement
Estimated cash at end Q4 2011 = $1.75mill
Estimated spend for Q1 2012 =??????
On Regional exploration, “The program is ongoing and is progressing well, and is anticipated to continue through to at least the end of 2011.” – likely not to be too much spent in Q1 on exploration.
Then final 3 marketable titles are under negotiation. And I also assume as per Touquoys post that cash for the unmarketable titles will be put aside. So how much will be spent in Q1 and Q2 on land titles. We also have running the business and maybe the last of the exploration in Q1.
Estimated cash at end of Q1 = $1.75mill-outflows in Q1.
1 million to be paid in may2012
Estimated cash at end Q2= $0.75mill–outflows in Q1 and Q2…… uh oh..............uh oh.
Looks to me like there will be a cap raising before/during May.
We are still awaiting results from the CH drilling in November and the results of the regional exploration program. Fingers crossed these are super super important!!!!.
I feel that if these results are good then we will see a cap raising soon after. I assume that if CR is not done immediately we risk a drop in SP due to added risk of not having property issues sorted prior to May.
If the share price does not rise after drilling results, then I guess the cap raising will be after property issue is sorted but must be before final payment for CH.
So if the drilling results do not bump up the share price and the titles issue is not sorted before May there looks to be a good chance of a cap raising at a scary low level. Ask yourself how low this stock could be under these conditions. Beware the risk of dilution!
It also looks like there will be no further regional exploration and no further development of CH until after a cap raising.
The question is, Do we attempt CR to pay for more exploration or do we halt all further exploration until we see cash flow from a mine at Touquoy.
I think this all depends on whether we have good drill results and have the property issue sorted before May. If share price is low further exploration will result in big dilution and may not be worthwhile. How much could atv spend on exploration after CH is paid for to seeing a cash flow from Touquoy?????
ATV is not without risk
ATV Price at posting:
3.2¢ Sentiment: LT Buy Disclosure: Held
