Explorer Quarterly Cash Update: June 2016

22 September 2016

Sherif Andrawes , Global Head of Natural Resources
Partner, Corporate Finance

BDO Explorer Quarterly Cash Update: Exploration expenditure bucks declining trend

This edition of the BDO Explorer Quarterly Cash Update reports on the cash position of Australian-listed explorers for the June 2016 quarter, based on quarterly Appendix 5B reports lodged with the ASX.

The latest quarter has seen a marginal increase in total exploration expenditure coupled with significantly higher net financing and investing cash flows, despite the number of companies reporting continuing decline.

Key findings from the June 2016 quarter include:

  • The average exploration expenditure increased for the first time in nine quarters, from $360,000 in the March 2016 quarter to $418,000 in the June 2016 quarter
  • In the June 2016 quarter, 713 companies lodged Appendix 5B reports, a decline of 3.37% from the 737 companies that lodged reports in the March 2016 quarter
  • Reasons for the reduction include 14 companies being the subject of backdoor listings, 12 of which were technology related companies, and 13 companies being delisted or suspended
  • There was a significant increase in the number of companies with positive financing cash flows, with 50.9% of companies being able to raise funds via either capital raisings or through borrowings during the June quarter. This is an increase of almost 9% compared with the 42.3% of companies with positive net financing cash flows for the March 2016 quarter.

Please view our Explorer Quarterly Cash Update for insights on the cash position of ASX-listed entities as at the June 2016 quarter.