cashflow for IceDoctor

If you look at the Cash Flow Statement in the Annual Report.

At a high level,

Net operating cashflow = +$37m
Net investing cashflow = $(43)m – most of which appears to be critical stay-in-business capex and development expenditure (ie, not investment)

NET OPERATING CASH FLOW = $(6)m

This is not sustainable. The negative cashflow needs to be financed somehow – more recently through raising equity.
My sense of where KCN is headed:
- Slowly bleed recently raised cash
- Go hard on defining a resource at the Chilean asset – to support the raising of more equity in a year or so
- Meantime a cpl more quarterly’s have come out and the share price has drifted lower
- When more equity is raised on the back of the Chilean project the share price is much lower than now – and why would you throw money at a KCN that still has negative cashflow??
- KCN will try and offload Challenger, but will be unsuccessful – who would buy this very high cost asset in an environment of a strengthening USD?

Next quarterly due this Wed.