Lunnon Metals Limited Quarterly Cash Flow Report - September 2024
LM8 (LM8) Share Update October 2024 Wednesday 23rd
Lunnon Metals Reports Quarterly Cash Flow and Financial Position
Lunnon Metals Limited (ASX: LM8) has released its quarterly cash flow report for the period ending 30 September 2024, highlighting a net cash decrease and ongoing operational expenditures.
Instant Summary:
- Net cash used in operating activities: $874,000.
- Net cash used in investing activities: $80,000.
- Net cash from financing activities: $74,000.
- Cash and cash equivalents at end of period: $21.1 million.
- Estimated quarters of funding available: 22.
Operating Activities
Lunnon Metals reported a net cash outflow of $874,000 from operating activities during the quarter. This includes payments for exploration and evaluation amounting to $489,000, staff costs of $767,000, and administration costs of $181,000. The company also received $415,000 in interest and $150,000 in GST from the ATO.
Investing and Financing Activities
Investing activities resulted in a net cash outflow of $80,000, primarily due to exploration and evaluation payments. Financing activities provided a net cash inflow of $74,000, mainly from the exercise of options worth $85,000, offset by other costs of $11,000.
Financial Position
The company ended the quarter with $21.1 million in cash and cash equivalents, a decrease from $22 million at the beginning of the period. The available funding is estimated to cover 22 quarters of operations, indicating a stable financial position.
The cash flow report suggests that Lunnon Metals is maintaining a stable financial position despite the net cash outflow. The company's substantial cash reserves provide a buffer for continued exploration and operational activities. The market reaction is expected to be neutral, as the financials align with typical industry expectations.
Investor Reaction:
Analysts may view the report as a sign of steady financial management. The company's ability to maintain significant cash reserves is likely to reassure investors about its capacity to fund future operations without immediate need for additional financing.
Conclusion:
Investors should continue to monitor Lunnon Metals' operational progress and financial management strategies. The company's strong cash position provides a solid foundation for future exploration and development activities.