NickelSearch Limited's Quarterly Cash Flow Report for Q3 2024
NIS (NIS) Share Update October 2024 Thursday 31st
NickelSearch Limited Reports Quarterly Cash Flow Update
NickelSearch Limited (ASX: NIS) has released its quarterly cash flow report for the period ending 30 September 2024, highlighting a slight increase in cash reserves despite ongoing exploration and corporate expenses.
Instant Summary:
- Net cash used in operating activities: $235,000.
- Net cash used in investing activities: $236,000.
- Net cash from financing activities: $498,000.
- Cash and cash equivalents at end of period: $1,709,000.
- Estimated quarters of funding available: 3.8.
Operating Activities
During the third quarter of 2024, NickelSearch Limited reported a net cash outflow of $235,000 from operating activities. This includes payments of $192,000 for exploration and evaluation, $114,000 for staff costs, and $341,000 for administration and corporate expenses. However, the company received $373,000 from government grants and tax incentives, which helped offset these expenses.
Investing Activities
The company also reported a net cash outflow of $236,000 from investing activities. This primarily consisted of $206,000 spent on exploration and evaluation and $25,000 on acquiring tenements. These investments are crucial for the company's long-term growth strategy in the mining sector.
Financing Activities
NickelSearch successfully raised $558,000 through the issuance of equity securities, with transaction costs amounting to $60,000. This resulted in a net cash inflow of $498,000 from financing activities, bolstering the company's cash reserves.
Cash Position
As a result of these activities, NickelSearch's cash and cash equivalents increased by $27,000, bringing the total to $1,709,000 at the end of the quarter. The company estimates it has sufficient funding for approximately 3.8 quarters, based on its current cash outflows.
The slight increase in cash reserves is a positive sign for NickelSearch, indicating effective management of its financial resources. The successful equity raise demonstrates investor confidence in the company's prospects. However, continued cash outflows for exploration and corporate expenses highlight the need for ongoing financial discipline.
Investor Reaction:
Analysts may view the report as a mixed bag, with the positive cash increase tempered by significant outflows. The company's ability to secure government grants and raise equity capital is encouraging, but investors will be keen to see how these funds are utilized to drive future growth.
Conclusion:
Investors should keep an eye on NickelSearch's strategic initiatives and cash management in the coming quarters. The company's exploration activities and financial stewardship will be key factors in its ability to deliver long-term value.