Legend Mining Limited: September 2024 Quarterly Cash Flow Report
LEG (LEG) Share Update October 2024 Monday 21st
Legend Mining Limited Reports Quarterly Cash Flow for September 2024
Legend Mining Limited (ASX: LEG) has released its quarterly cash flow report for the period ending 30 September 2024, highlighting significant financial activities and cash management strategies.
Instant Summary:
- Net cash used in operating activities: $126,000.
- Net cash used in investing activities: $975,000.
- Cash and cash equivalents at quarter-end: $12.043 million.
- Estimated quarters of funding available: 10.93.
Operating Activities
During the quarter, Legend Mining reported a net cash outflow of $126,000 from operating activities. This includes payments for staff costs amounting to $86,000 and administration costs of $205,000. The company also received $164,000 in interest, contributing positively to the cash flow.
Investing Activities
Legend Mining's investing activities resulted in a net cash outflow of $975,000, primarily due to payments for exploration and evaluation. This reflects the company's ongoing commitment to its exploration projects and potential future growth.
Financing Activities
The financing activities saw a minimal cash outflow of $24,000, related to lease payments. There were no new proceeds from equity or debt securities during the quarter.
Cash Position
As of 30 September 2024, Legend Mining held $12.043 million in cash and cash equivalents, a decrease from $13.168 million at the beginning of the quarter. The company estimates it has sufficient funding for approximately 10.93 quarters based on current cash flow and expenditure levels.
The reported cash flow indicates a cautious approach to cash management, with significant funds allocated to exploration activities. This could signal confidence in future resource potential, although the net cash decrease might concern some investors. The cash reserve provides a buffer for continued operations without immediate financing needs.
Investor Reaction:
Analysts may view the heavy investment in exploration as a positive sign of commitment to long-term growth, though the decrease in cash reserves could be a point of concern. The market's reaction will likely depend on upcoming exploration results and their potential impact on the company's valuation.
Conclusion:
Investors should keep an eye on Legend Mining's future exploration updates and financial strategies. The company's ability to manage its cash reserves effectively while pursuing growth opportunities will be crucial for maintaining investor confidence.