Corazon Mining Limited - Quarterly Cash Flow Report - 30 June 2024
CZN (CZN) Share Update July 2024 Monday 29th
Corazon Mining Limited Releases Quarterly Cash Flow Report
Corazon Mining Limited (ASX: CZN) has released its quarterly cash flow report for the period ending 30 June 2024, highlighting a net cash increase of $530,000.
Instant Summary:
- Net cash increase of $530,000 for the current quarter.
- Receipts from government grants and tax incentives totaled $219,000.
- Exploration and evaluation expenses amounted to $471,000.
- Cash and cash equivalents at the end of the period were $1,199,000.
- Proceeds from the disposal of tenements amounted to $750,000.
Quarterly Cash Flow Overview
Corazon Mining Limited has reported a net cash increase of $530,000 for the quarter ending 30 June 2024. This increase is primarily attributed to proceeds from the disposal of tenements, which brought in $750,000. The company also received $219,000 from government grants and tax incentives.
Operating activities saw a net cash outflow of $67,000, with significant expenses in staff costs ($59,000) and administration and corporate costs ($229,000). Interest received during the quarter amounted to $2,000.
Investing and Financing Activities
Investing activities resulted in a net cash inflow of $279,000, despite $471,000 spent on exploration and evaluation. The major contributor to this inflow was the $750,000 received from the disposal of tenements.
Financing activities also contributed positively, with a net cash inflow of $320,000. This was primarily due to proceeds from the issue of equity securities, amounting to $340,000, offset by transaction costs of $20,000.
Cash Position and Future Outlook
At the end of the quarter, Corazon Mining Limited reported cash and cash equivalents of $1,199,000, up from $669,000 at the beginning of the period. The company estimates that it has sufficient funding for approximately 2.2 quarters of operations, based on current expenditure rates.
The net cash increase and positive cash flow from financing activities are likely to bolster investor confidence in Corazon Mining Limited. However, the significant expenses in exploration and evaluation indicate ongoing financial commitments that could impact future cash flows. The company's ability to secure government grants and successfully dispose of tenements also highlights its proactive approach to managing finances.
Investor Reaction:
Analysts have noted the positive cash flow as a sign of effective financial management. Investors are cautiously optimistic, recognizing the potential for future growth balanced against the ongoing costs of exploration and evaluation.
Conclusion:
Investors should continue to monitor Corazon Mining Limited's financial performance, particularly its ability to manage exploration expenses and secure additional funding. The company's strategic decisions in the coming quarters will be crucial in maintaining its financial stability and growth potential.