Publication:

Explorer Quarterly Cash Update: June-September 2013

22 January 2014

Bruce Gordon |

RESEARCH INTO THE FINANCIAL HEALTH OF AUSTRALIAN-LISTED EXPLORERS

BDO has undertaken research into the cash position of Australian-listed explorers as at the June 2013 and September 2013 quarters to determine the sufficiency of cash reserves to meet operational and exploration commitments.

This research involved a review of the cash position of all ASX-listed entities that were required to lodge Appendix 5B quarterly cash flow statements (mining and oil and gas exploration entities). The majority of these entities are mining explorers and we were keen to see how these companies were performing from a cash perspective.

It appears that although a similar number of entities were encountering cash flow issues in both the June and September 2013 quarters, companies identified in the June 2013 quarter as having cash flow issues are surviving by either: 

  • Reducing operating cash flows to reduce the cash burn
  • Raising equity capital from either existing or new shareholders to continue operations
  • Raising debt capital
  • Receipt of R&D; refunds/grants.