Eastern Resources Limited - Quarterly Cash Flow Report for September 2024
EASTERN RESOURCES LIMITED (EFE) Share Update October 2024 Friday 25th
Eastern Resources Limited Releases Quarterly Cash Flow Report
Eastern Resources Limited (ASX: EAS) has released its quarterly cash flow report for the period ending September 2024, detailing its financial activities and cash position.
Instant Summary:
- Net cash used in operating activities: $134,000.
- Net cash used in investing activities: $211,000.
- Cash and cash equivalents decreased to $3,969,000.
- Estimated 11.5 quarters of funding available.
Operating Activities
Eastern Resources reported a net cash outflow of $134,000 from operating activities. This includes payments of $177,000 for staff costs and $42,000 in administration and corporate costs, offset by a small interest income of $1,000.
Investing Activities
The company spent $211,000 on capitalized exploration and evaluation, resulting in a net cash outflow from investing activities. No proceeds were reported from the disposal of assets or investments.
Financing Activities
There were no cash flows from financing activities during the quarter, indicating no new equity or debt was raised.
Cash Position
Eastern Resources began the quarter with $4,314,000 in cash and cash equivalents. After accounting for operating and investing activities, the company ended the period with $3,969,000. This represents a decrease of $345,000 in cash reserves.
Future Outlook
The company estimates having sufficient funding for approximately 11.5 quarters based on its current cash outflows and cash reserves.
The decrease in cash reserves reflects ongoing investments in exploration and evaluation, which are crucial for the company's growth prospects. While the cash outflow may concern some investors, the company maintains a healthy cash position, providing a buffer for future operations.
Investor Reaction:
Analysts are likely to view the report as a routine financial update. The significant cash reserves and lack of financing activities suggest a stable financial position, though continued monitoring of exploration outcomes will be essential.
Conclusion:
Investors should consider Eastern Resources' strategic focus on exploration activities and its ability to sustain operations with current cash reserves. The company's financial health appears stable, but future exploration results will be critical for long-term growth.