As I pointed out back in April , Noronts Cash Burn Rate excluding aquisition costs was at $ 3.610.981 / month up to the end of January 08.
As glorieux stated, with the additional drilling and camp/personel extension the likelihood that we could be closer to 4-4.5 M / month seems to be quite high.
On the other hand we should have received cash from JV´s in the first half of 2008.
Nevertheless, the burn rate will be quite significant and I´m sure Richard and his team have already made plans as to when and how to be looking for further "money injections".
BTW, I´m pretty sure, Windfall plays a big role in these plans.
FANTOMAS
http://agoracom.com/ir/Noront/messag...
Cash Burn Rate
Posted by: FANTOMAS on April 19, 2008 07:46PM
According to the latest financial statement (three month ending Jan. 31 2008) we had the following costs per property (excluding aquisition costs):
1. McFauld´s Lake 5.819.525
2. Windfall Lake 2.241.603
3. Burnt Hill 1.502.597
4. Lizar 663.326
5. Garden Island 480.715
6. Hunters Point 59.428
7. Escondida 40.157
8. Iron Lake 15.357
9. El Verde 5.671
10.Volcan 1 4.565
TOTAL 10.832.944
(There were no costs for the other properties in that quarter).
Cash Burn Rate/Month 3.610.981
I assume, with the camp/workload increasing in McFauld´s there will be even higher costs per month by now.
That puts the financing circumstances (PP in February) and the recent exercise of warrants in an even more positive light, because we need a lot of money. And the longer it lasts in the current world financial situation the better.
Some interesting examples for that quarter:
McFauld´s:
1.706.113 for Drilling
69.754 for Assays
1.780.441 for Transportation
363.755 for Claim Staking
1.146.727 for Geophysics
142.152 for Geological
Windfall Lake:
850.094 for Subsurface work
618.687 for Camp costs
327.029 for Drilling
143.525 for Geological
9.767 for Road construction
FANTOMAS
