King River Resources Limited - Quarterly Cash Flow Report - 30 June 2024
KRR (KRR) Share Update July 2024 Tuesday 16th
King River Resources Limited Releases Quarterly Cash Flow Report
King River Resources Limited (ASX: KRR) has released its quarterly cash flow report for the period ending 30 June 2024, detailing significant financial activities and cash flow changes.
Instant Summary:
- Net cash used in operating activities: $185,000
- Net cash used in investing activities: $443,000
- Net cash used in financing activities: $234,000
- Cash and cash equivalents at end of period: $3.936 million
Operating Activities
During the current quarter, King River Resources reported net cash used in operating activities amounting to $185,000. This includes payments for staff costs ($38,000) and administration and corporate costs ($91,000), offset by interest received ($32,000) and government grants and tax incentives ($283,000).
Investing Activities
The company reported net cash used in investing activities totaling $443,000. Key expenditures include payments for property, plant, and equipment ($30,000) and exploration and evaluation ($491,000). However, the company received proceeds from a research and development tax refund amounting to $78,000.
Financing Activities
In terms of financing activities, King River Resources reported a net cash outflow of $234,000. This includes payments related to lease principals ($7,000) and on-market share buy-backs ($227,000).
Cash Position
At the beginning of the quarter, the company had cash and cash equivalents amounting to $4.428 million. By the end of the period, this figure had decreased to $3.936 million, reflecting a net cash decrease of $492,000 for the quarter.
The decrease in cash reserves reflects significant expenditures in exploration and evaluation, which are critical for the company's future growth prospects. While the net cash outflow might concern some investors, the company's ability to secure government grants and tax incentives is a positive sign. Investors should closely monitor the company's cash management strategies and future funding plans.
Investor Reaction:
Investor reactions have been mixed. Some investors are concerned about the continuous cash outflows, while others are optimistic about the company's long-term exploration and evaluation activities. Analysts have noted the importance of the company's ability to secure additional funding to sustain its operations.
Conclusion:
Investors should keep an eye on King River Resources' future financial activities and funding strategies. The company's commitment to exploration and evaluation is promising, but effective cash management will be crucial for maintaining investor confidence.