September 2016: Q1 – Explorer Quarterly Cash Update

11 December 2016

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

BDO Explorer Quarterly Cash Update: Exploration expenditure increases for second successive quarter

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

The latest quarter has seen an increase in both total exploration expenditure and operating expenditure, however cash reserves, financing, and investing cashflow have declined after significant growth last quarter, yet remain higher than the averages exhibited in recent periods.

Key findings from the September 2016 quarter include:

  • The average exploration expenditure increased for the second successive quarter, from $418,000 in the June 2016 quarter to $451,000 in the September 2016 quarter. This comes after nine quarters of sustained reductions in total exploration expenditure
  • In the September 2016 quarter, 698 companies lodged Appendix 5B reports, a decline of 2.15% from the 713 companies that lodged reports in the June 2016 quarter
  • Reasons for the reduction included four companies being the subject of backdoor listings, all of which were technology related companies, and 12 companies being delisted or suspended
  • Shareholders showed keen interest in gold stocks in response to increased economic uncertainty resulting from the US Presidential Election.

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