financially healthy no need for cap raising

I’ve summarised CTO’s cash flow statements starting March 2005. Below summary is for CALENDAR years.

A = receipts from product sales
B = costs for exploration, development, production, admin, interest & finance
C = costs for purchase of fixed assets and repayment of debt
D = revenue from share placements, options and debt

2005: A = $0.0, B = $6.3m, C = $0.2m, D = $5.3m
2006: A = $0.0, B = $12.2m, C = $10.5m, D = $24.0m
2007: A = $8.9m, B = $21.7m, C = $4.4m, D = $19.8m

For the March 2008 quarter we have:

Q108: A = $3.1m, B = $4.9m, C = $1.9m, D = $1.5m

Shareholders want A to go up and D to go down with B and C funded by the difference. Revenue in Q108 was from 3913 oz production (16k oz pa rate).

Sidr’s mine visit has shown that production is ready to accelerate when the power upgrade is complete. We’ll see the benefits from July 08.

Assuming the new rate is 40k oz pa, A will increase to approx $7.8m per quarter or $31m annually. This will cover ongoing development costs (D) and is why capital raising is an option for the company moving forward and not a necessity.

CTO is in extremely sound financial position, would everyone agree?

Rowingboat.