In June 2012 the cash was £5.05m and 4300m of KN was drilled
In Nov 2012 the cash was £4.20m and 5549m of KN was drilled (£680 of cash burn per metre)
In Dec 2012 the cash was £3.7m and 512m of KS was drilled (£976 of cash burn per metre)
In 2013 there is 18500m left to to drill on KS and £3.7m in cash (That is £200 max per metre)
So I calculate that BEM on cash burn of say £600 per metre for KS will run out of cash a third of the way through KS drilling. Lets assume that there are no further delays and they burn at a rate of £300 a metre they will run out and need another £2m of capital raising to complete KS.
You can forget about the additional 11000m drilling on KN as that will burn £2.2m minimum.
These are all very generous burn rates on 2012 performance so perhaps someone can check out the maths and contradict my calculations as I am no financial expert, but what I see is concerning.
Happy to be challenged. We will get another update on May 31 and it will be interesting to see the cash position.
Datafeed and UK data supplied by NETbuilder and Interactive Data.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk!
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.