GREY:NWSKF - Post by User
Post by
goindeeperon Oct 08, 2014 9:12am
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Post# 23009207
Intensive drilling is done so NES has lots of cash left
Intensive drilling is done so NES has lots of cash leftOperational expenses are only $172 000/month at current burn rate (9 month operating expenses of $1 547 167 shown on page 17 of June MD&A).
The rest of the expenditures since July 31, 2013 were variable and discretionary expenses in land aquisition ($874 602) and exploration ($5 731 233) (pg 16 of June MD&A).
The current exploration expenses are much less now since the intensive drilling program for the updated 43-101 is complete.
Current cash balance as of April 31, 2014 was $7 584 909 (cash-current payables).
NES still had cash for about 15 more months from April 31/2014 to continue operations, which takes us to August 2015 before a financing is absolutely required (Assuming a still significant aquisition and exploration program expenditure of $300 000/month and adding in the $172 000/month operating expense = $472 000/month). That said, NES won’t let it go that long and will re-finance if and when it is most advantageous to do so. If it comes down to it, I think Lundin would be happy to throw $10 million at us in order to average down his cost per share.