- Junior explorer White Cliff Minerals (WCN) has more than doubled its cash burn over the first quarter of FY21
- Since FY20 came to an end, the West Aussie materials stock went cashflow-negative by $142,000
- In comparison, over the June quarter, White Cliff only burnt through $66,000
- Despite the increased cash burn, White Cliff maintains it still has a strong cash position, with over $2 million in the bank and 10 million RTG mining shares, worth roughly $1.8 million
- WCN’s highlights for the quarter include buying the Reedy South Gold Project and appointing a contractor for its maiden drilling program
- Following today’s news, White Cliff shares are up four per cent, worth 2.6 cents each come market close
White Cliff Minerals (WCN) has more than doubled its cash burn over the first quarter of FY21.
Since FY20 came to an end, the West Aussie materials stock went cashflow-negative by $142,000. In comparison, over the June quarter, White Cliff only burnt through $66,000.
During the September quarter, the base and precious metals explorer’s main operation expenses were split evenly between two key areas: exploration and evaluation and admin and corporate costs. Specifically, White Cliff spent $65,000 in both categories over the last three months.
In addition to its $142,000 operational cash burn, the junior explorer invested $20,000 in its tenements over the quarter. Overall, it brings White Cliff’s total outgoings to $162,00 for the period.
Despite the increased cash burn, White Cliff maintains it still has a strong cash position. With nearly $2 million in the bank and over 10 million RTG Mining (RTG) shares to its name, the company has roughly $3.8 million in cash and cash equivalents.
Further, $1.96 million in cash reserves mean WCN has enough capital to sustain operations for another three years — that is if spending levels stay the same.
Over the September quarter, White Cliff bought the Reedy South Gold Project in WA. In the past, historical drilling at the tenement, which is near the highly prospective Cue goldfields, has returned up to 10.86 grams per tonne gold.
To follow up on past results, White Cliff has mandated a drilling contractor to kickstart a maiden 3000-metre campaign at the project. At this stage, that’s expected to begin in the coming weeks.
The precious and base metal explorer’s latest buy brings its total number of wholly-owned gold projects to three. Meanwhile, the company is also exploring four base metal plays — three of which are prospective for cobalt, while one is focussed on nickel.
Following today’s news, White Cliff shares are up four per cent, worth 2.6 cents each come market close.