Explorer Quarterly Cash Update: September 2014

22 December 2014

Bruce Gordon |

Research into the financial health of Australian-listed explorers | Small increase in capital raisings, but funding remains critical for many

Over the past 12 months, BDO has undertaken quarterly research into the cash position of Australian-listed explorers.

In this edition, we present analysis of the September 2014 quarter, combined with our research findings from the previous four quarters, to provide a commentary on both the quarterly and annual cash flow data for Australian-listed mining, oil and gas exploration entities (who have lodged Appendix 5B cash flow statements with the ASX).

Our analysis provides the following key insights:

  • More junior explorers are not exploring – in the September quarter one in nine explorers did not undertake any exploration expenditure. This is an increase from the one in ten explorers that did not carry out exploration during the June 2014 quarter
  • 63% of explorers have less than $2 million cash reserves at 30 September 2014
  • For the first time since we started our analysis, less than 10% of explorers have more than $10 million available cash
  • 44% of explorers do not have sufficient cash available to fund operating expenses at current levels for more than three quarters.

Please view our Explorer Quarterly Cash Update for insights on the cash position of ASX-listed entities as at the September 2014 quarter.