Bannerman Energy Burns Cash on Exploration and Development but Maintains Strong Balance

Bannerman Energy ( (AU:BMN) ) has shared an announcement.

Bannerman Energy reported a quarterly cash outflow driven mainly by staff, administrative and corporate expenses, which totaled A$3.3 million in the period, partially offset by A$0.9 million of interest income. The company ended the quarter with a net operating cash outflow of A$2.4 million, highlighting its pre-revenue status and reliance on financial income and capital markets.

Investing cash outflows reached A$16.3 million for the quarter, reflecting heavy spending on property, plant and equipment and A$6.1 million on exploration and evaluation, bringing year-to-date investing outflows to nearly A$49.7 million. Despite having raised A$85 million in equity earlier in the financial year, Bannerman’s strong project and exploration spend resulted in a quarterly net cash decrease of A$18.8 million, leaving it with A$70.5 million in cash and cash equivalents to fund ongoing development activities.

The most recent analyst rating on (AU:BMN) stock is a Hold with a A$4.00 price target. To see the full list of analyst forecasts on Bannerman Energy stock, see the AU:BMN Stock Forecast page.

More about Bannerman Energy

Bannerman Energy Ltd is a mining exploration company focused on the development and evaluation of mineral assets. The business operates in the resources sector, with activities centred on exploration, project development and associated corporate functions rather than current production revenues.

Average Trading Volume: 1,276,028

Technical Sentiment Signal: Strong Buy

Current Market Cap: A$930.6M

For an in-depth examination of BMN stock, go to TipRanks’ Overview page.