Lycaon Resources Limited - Quarterly Cash Flow Report - June 2024
LYCAON RESOURCES LTD (LYN) Share Update July 2024 Tuesday 9th
Lycaon Resources Reports Quarterly Cash Flow for June 2024
Lycaon Resources Limited (ASX: LYN) has released its quarterly cash flow report for the period ending 30 June 2024, detailing its financial activities and cash position.
Instant Summary:
- Net cash used in operating activities: $86,000
- Net cash used in investing activities: $45,000
- Net cash from financing activities: $2,326,000
- Cash and cash equivalents at the end of the period: $4,655,000
- Total available funding: $4,655,000
- Estimated quarters of funding available: 35.54
Operating Activities
During the current quarter, Lycaon Resources Limited reported net cash used in operating activities amounting to $86,000. This includes payments for staff costs totaling $25,000 and administration and corporate costs of $89,000. The company received $28,000 in interest, contributing to its operating cash flow.
For the year to date, the net cash used in operating activities was $408,000, reflecting ongoing operational expenses and limited revenue generation.
Investing Activities
In terms of investing activities, the company spent $45,000 on exploration and evaluation during the current quarter. This brings the year-to-date total for exploration and evaluation expenses to $1,127,000.
No significant proceeds were reported from the disposal of assets or investments during this period.
Financing Activities
Lycaon Resources Limited successfully raised $2,500,000 through the issuance of equity securities, excluding convertible debt securities. After accounting for transaction costs of $174,000, the net cash from financing activities was $2,326,000 for the current quarter.
Year-to-date, the company has raised a total of $4,000,000 from financing activities, with net proceeds of $3,712,000 after transaction costs.
Cash Position
At the beginning of the quarter, Lycaon Resources had cash and cash equivalents of $2,460,000. Following the reported cash flows from operating, investing, and financing activities, the company ended the period with $4,655,000 in cash and cash equivalents.
The company has no loan facilities or credit standby arrangements in place, and the total available funding at the end of the quarter stands at $4,655,000.
Future Outlook
With estimated quarters of funding available calculated at 35.54, Lycaon Resources is well-positioned to continue its operations and pursue its business objectives without immediate concerns for additional funding.
The financial performance of Lycaon Resources Limited indicates a stable cash position, primarily due to successful financing activities. This positive cash flow from financing provides the company with sufficient liquidity to support its exploration and evaluation activities. However, the ongoing operational expenses and limited revenue generation highlight the need for continued financial prudence.
Investors may view the strong cash position favorably, but the company's ability to generate revenue and manage costs will be crucial in maintaining investor confidence moving forward.
Investor Reaction:
Analysts have noted the company's strong cash position as a positive indicator, but emphasize the importance of revenue generation and cost management. Investor reactions have been cautiously optimistic, with some expressing confidence in the company's ability to sustain its operations with the available funding.
Conclusion:
Investors should keep an eye on Lycaon Resources' future financial reports and strategic initiatives to assess the company's progress in revenue generation and cost management. The company's strong cash position provides a solid foundation, but ongoing financial performance will be key to long-term success.