Peninsula Energy Limited - Quarterly Cash Flow Report - 30 June 2024
PEN (PEN) Share Update July 2024 Wednesday 24th
Peninsula Energy Limited Releases Quarterly Cash Flow Report
Peninsula Energy Limited (ASX: PEN) has released its quarterly cash flow report for the period ending 30 June 2024, detailing significant financial activities and changes in cash positions.
Instant Summary:
- Net cash from operating activities: -$1.8 million
- Net cash used in investing activities: -$14.1 million
- Net cash from financing activities: $66.1 million
- Cash and cash equivalents at end of period: $99.9 million
- Payments to related parties: $373,000
Operating Activities
During the current quarter, Peninsula Energy Limited reported net cash outflows from operating activities amounting to $1.8 million. This includes payments for staff costs of $723,000 and administration and corporate costs of $1.7 million, partially offset by interest received of $622,000.
Investing Activities
The company reported significant cash outflows for investing activities, totaling $14.1 million. This was primarily due to the Lance Project development costs, which amounted to $14.1 million for the quarter.
Financing Activities
Peninsula Energy raised $70.9 million from the issuance of equity securities, with transaction costs related to these issues amounting to $4.8 million. The net cash inflow from financing activities for the quarter was $66.1 million.
Cash Position
As of 30 June 2024, the company had cash and cash equivalents of $99.9 million, a significant increase from $49.6 million at the beginning of the quarter. This increase was driven by the net proceeds from financing activities.
Payments to Related Parties
Peninsula Energy reported payments to related parties of $373,000 during the quarter, which includes payments made to Executive Directors and Non-Executive Directors' fees.
The substantial cash inflow from financing activities significantly strengthens Peninsula Energy's cash position, providing the company with a robust financial base for future operations and investments. However, the ongoing cash outflows for the Lance Project development and operating activities highlight the company's continued investment in its core projects.
Investor Reaction:
Analysts have noted the positive impact of the strong cash position on Peninsula Energy's financial stability. Investors are likely to view the significant cash inflows from financing activities favorably, although ongoing expenditures on the Lance Project will be closely monitored.
Conclusion:
Investors should keep an eye on Peninsula Energy's future financial reports and developments in the Lance Project. The company's ability to manage its cash flows and investment activities will be crucial in maintaining investor confidence and driving future growth.