NuEnergy Gas Limited - Quarterly Cash Flow Report - June 2024
NGY (NGY) Share Update July 2024 Monday 29th
NuEnergy Gas Limited Reports Quarterly Cash Flow Results
NuEnergy Gas Limited (ASX: NGY) has published its quarterly cash flow report for the period ending June 30, 2024, detailing its financial activities and current cash position.
Instant Summary:
- Net cash used in operating activities: $128,000
- Net cash used in investing activities: $293,000
- Cash and cash equivalents at end of period: $146,000
- Total financing facilities: $3.144 million, fully drawn
- Heads of Agreement signed with PT Perusahaan Gas Negara Tbk for coal bed methane sales
Operating Activities
NuEnergy Gas Limited reported net cash used in operating activities of $128,000 for the quarter. This includes administration and corporate costs amounting to $134,000 offset by interest received of $1,000 and other receipts totaling $5,000.
Investing Activities
The company used $293,000 in investing activities, primarily for capitalized exploration and evaluation costs. No proceeds were received from the disposal of entities or other assets during the quarter.
Financing Activities
There were no significant cash flows from financing activities, with net cash used totaling $105,000 due to transaction costs related to loans and borrowings.
Cash Position
NuEnergy's cash and cash equivalents at the end of the period stood at $146,000, down from $580,000 at the beginning of the quarter. The company has fully drawn its total financing facilities of $3.144 million.
Future Outlook
NuEnergy expects its operating cash flows to remain negative until it completes exploration, evaluation, and development phases. The company is reliant on capital raising activities to fund its ongoing projects. A Heads of Agreement has been signed with PT Perusahaan Gas Negara Tbk for the sale and purchase of coal bed methane, which is expected to generate early gas sales revenue.
The report indicates that NuEnergy is in a challenging financial position with limited cash reserves and reliance on future capital raising activities. The signing of the Heads of Agreement for coal bed methane sales is a positive development, but the company's overall financial health remains a concern. Investors may react cautiously to this news.
Investor Reaction:
Analysts have noted the company's reliance on future capital raising and the potential risks associated with its current cash position. Some investors may be concerned about the sustainability of operations without significant cash inflows.
Conclusion:
Investors should closely monitor NuEnergy's upcoming capital raising activities and the progress of its coal bed methane sales agreement. The company's ability to secure additional funding and generate revenue will be crucial for its future stability.