Explorer Quarterly Cash Update: June-December 2013

22 January 2014

Bruce Gordon |

Research into the financial health of Australian-listed explorers | Explorers show continuing signs of resilience

BDO regularly undertakes research into the cash position of Australian-listed explorers. This research includes a review of the cash position of all ASX-listed entities that lodged Appendix 5B quarterly cash flow statements (mining and oil and gas exploration entities).

Recent research released by us includes that relating to the June 2013 and September 2013 quarters. We have now completed the research on the December 2013 quarter.

From our review of these three quarters of explorers’ cash flows, the highlights include:

  • There are a number of explorers who have survived by ceasing exploration expenditure entirely
  • Although a number of explorers have very low cash positions, there have been very few companies placed into liquidation or administration i.e. explorers are finding ways of surviving
  • Capital is continuing to be raised by explorers (both equity and debt) albeit at lower levels than we have historically seen.