cash burn rate = 7.7 years of working capital

For the financial year ending 2012, Cokal's net cash outflow from operating activities was A$3.85m. The company as at 30 Jun 2012 had A$29.63m in cash or cash equivalents. Cokal therefore has enough cash on the balance sheet to last 7.7 years at the current burn rate. For a junior miner this is a strong position, because the company will not be forced to raise capital at the wrong part of the cycle and should mean the company has enough cash to see it through to the ramp up of its direct ship operations in Indonesia.

Note also 20,780,000 unlisted options at a strike price of A$0.30 a share will expire out of the money on the 30 Sep 2012. Had these options been in the money (i.e. the shares trading above A$0.30), then it would have resulted in a dilution to existing shareholders of 5.05%. However this has now been avoided.