Further evidence of a scarcity of capital in today's OZ. Give...

Further evidence of a scarcity of capital in today's OZ.
Give Bauk and the Board credit for keeping NTU in the game.
The view from Mt Everest may be very good.
Here is part of the article..
Cash squeeze has junior explorers running on fumes

• The Australian
• March 04, 2015 12:00AM

Barry FitzGerald
Resources Editor
Melbourne

THE cash squeeze on Australia’s exploration sector in response to the broad collapse in commodity prices continues to worsen, with close to half of listed explorers down to only six months of operating expenses cover.
The ability of junior explorers to top up cash to keep exploring — and to keep the door open — has all but disappeared, with industry veterans saying investors will stay turned off for as long as commodity prices languish,
“Cash reserves are dwindling, and raising capital for juniors is the toughest it has been since the early 1990s,’’ Baillieu Holst equity partner and long-time junior mining market watcher Richard Morrow said yesterday.
“It’s easier to climb Mount Everest than raise capital for junior exploration in Australia. The projects are still there, but the enthusiasm for funding exploration is lacking,’’ Mr Morrow said.
“That is despite some excellent greenfields discoveries, especially the new Fraser Range nickel province in Western Australia.
“Even the second-line gold and base metal producers are struggling in the market, despite the fall in the Australian dollar helping to boost profit margins.’’
Mr Morrow was commenting after the release last night by accountancy and advisory firm BDO of its review of quarterly cash statements from the explorers lodged with the ASX.
BDO found that of the 814 companies that lodged cash statements, 379, or 47 per cent, had only one or two quarters of cash reserves to cover exploration and the costs of keeping the office door open — rent, listing fees, insurance, audit fees, legal fees, wages and directors fees.
The number with just one quarter’s cover was 236, or 29 per cent. BDO began the survey in the June 2013 quarter and it has been a case of ongoing deterioration since.
In the June 2013 quarter, 861 explorers lodged cash reports. Lodgement numbers have since fallen to 814 — the reduced number being explained by those that have given up the ghost and subsequently been delisted, suspended, or are off chasing brighter futures as backdoor listings in information technology and biotechnology.