Pancontinental Energy NL Quarterly Cash Flow Report - 30 June 2024
PCL (PCL) Share Update July 2024 Tuesday 23rd
Pancontinental Energy NL Releases Quarterly Cash Flow Report
Pancontinental Energy NL (ASX: PCL) has released its quarterly cash flow report for the period ending 30 June 2024, revealing significant financial activities and cash flow changes.
Instant Summary:
- Net cash used in operating activities: $317,000.
- Net cash used in investing activities: $244,000.
- Net cash from financing activities: $602,000.
- Cash and cash equivalents at the end of the period: $4.301 million.
- Estimated quarters of funding available: 8.
Operating Activities
The report shows that Pancontinental Energy NL had no receipts from customers during the current quarter. Payments for exploration and evaluation amounted to $35,000, while staff costs, including PAYG, were $25,000. Directors' costs totaled $145,000, with $25,000 recharged. Administration and corporate costs were significant, amounting to $180,000. The net cash used in operating activities was $317,000 for the quarter and $1.106 million year-to-date.
Investing Activities
In terms of investing activities, the company did not acquire any new entities or tenements. Payments for property, plant, and equipment were $14,000, and exploration and evaluation costs were $244,000. The net cash used in investing activities was $244,000 for the quarter and $605,000 year-to-date.
Financing Activities
Pancontinental Energy NL saw a positive cash flow from financing activities, with proceeds from the exercise of options amounting to $602,000 for the quarter and $713,000 year-to-date. There were no proceeds from equity securities or convertible debt securities, and no borrowings or dividends paid. The net cash from financing activities was $602,000 for the quarter and $715,000 year-to-date.
Cash Position
The company started the quarter with cash and cash equivalents of $4.266 million and ended with $4.301 million. The effect of movement in exchange rates on cash held was a minor decrease of $6,000. The estimated quarters of funding available, based on current cash outflows, is 8 quarters.
Related Party Transactions
The report also highlights payments to related parties and their associates, totaling $146,000 for the current quarter. This includes directors' costs and other related expenses.
The net decrease in cash flow from operating and investing activities, offset by positive financing activities, indicates a cautious but stable financial position for Pancontinental Energy NL. The company's ability to sustain its operations for an estimated 8 quarters without additional funding is a positive sign for investors. However, the significant costs associated with exploration, evaluation, and administration may concern some investors.
Investor Reaction:
Analysts have noted the company's stable cash position and the positive impact of financing activities. Investor reactions have been mixed, with some expressing concern over the high administrative costs and others appreciating the company's ability to sustain operations without immediate additional funding.
Conclusion:
Investors should closely monitor Pancontinental Energy NL's financial activities and consider the potential long-term impacts on their portfolios. The company's strategic response to its cash flow challenges and cost management will be crucial in maintaining investor confidence.