some number crunching

I did some sums earlier in the year trying to work out what BoD had in mind. I've just done some more of that.

I have gone back to the June 2013 Cash QR to check budget numbers.

I have excluded one-offs. The following represent the total of exploration, development and administration for the 4 quarters starting 1 July 2013 - Sep 1/4. The numbers outside the brackets are the actual figures and the bracketed numbers represent the budget or forecast for the same period. Interest is excluded in both.

Sep Q 2013. $3.13m ($3m)

Dec Q 2013 $2.853m ($1.7m).

Mar Q 2014 $2.56m ($1.89m)

Jun Q 2014 $2.34m ($1.345m)

Sep Q 2014 -------- ($1.9m)

The forecast have always been lower than the actual.

As at 30 June 2014 there was cash of $4.509m. Deduct the forecast of $1.9m and also deduct $0.67m for interest. That would leave $1.939m as at 30 Sep. Add say another $0.739m for underestimating and that leaves $1.2m. Now that would leave things pretty tight for the 7 weeks til just after the AGM, so more money would be needed. However, there is existing capacity to issue 23+m shares under Rule 7.1A. Surely that would raise enough to get us through well past 1 Jan next year if implemented.

So what's up with the purpose of wanting to reactivate the 15% on 15 September?

An ultimate optimist might think that a cornerstone investor is waiting in the wings wanting a decent slice of the company and is prepared to pay a premium too. - maybe even pay enough to clear off Taurus and pursue a very active exploration program . Lovely! Excellent Forrest primary sulphides would have to precede that though you would have to think

A lower tier optimist might hope for excellent F results too but no CI, but a CR to expand and effectively carry out F drilling.

A non-optimist might think that there will be none of that and say that the reactivation is to simply to keep the company afloat.

It's all food for thought eh!