G'day
@rep96... even though nobody seems particularly interested
, including yourself lol, I've provided some screenshots and notes below.... (sorry if it's boring but I do have accounting blood in my veins).
Suffice to say, a small cap listed company's balance sheet has nothing whatsoever to do with it's market cap or share price.
"Market Index" show Book Value per share as 3.2c (see below) .... quite simply a nonsense figure and completely irrelevant IMO. They have divided Net Assets ($11,282,871) from the 30 June 2023 Balance Sheet by the Shares on issue at the time (346,755,343).... (again see below).
Furthermore, if you want to do a calculation for Net
TANGIBLE Assets (which you referred to ... "
Anyways, our Net Tangible assets sits at 3.4c/share"), you need to deduct the $6.3M shown for Capitalised Exploration Expenditure ... and also, to bring the figure up to date you need to significantly reduce the Cash at Bank by $2.1M from $4.3M to around $2.2M.
Taking $8.4M (6.3+2.1) off the $11,282,871 net asset value used by Market Index shows how irrelevant these sort of numbers really are.
MORE IMPORTANTLY, we all seem to agree that with a few good Announcements, our MC could or should be 4 or 5 times it's current level.... and if this was to happen, GUESS WHAT? THE BALANCE SHEET WOULDN'T CHANGE .... despite a big change in Share Price / Value.
Why have I bothered to post all this??? To show exactly why I keep saying, the Balance Sheet or Net Tangible Assets has no bearing whatsoever on the Market Cap (or Share Price).
Bring on a Monday morning Announcement.
have i got something right?
