Zambezi Resources Share Discussion Threads

[andy] 07/4/2008 09:58

Umair,

Not if they need funding, IMO.

[umair] 07/4/2008 09:42

Mining stocks seem to have recovered over the last week... will this feed through to ZRL ?

[umair] 03/4/2008 09:34

I agree they are going to have to do something about their cash position at some point. Its just when. They seem to be able to raise money from the market, that's going to be much easier if they have some good news and the share price rises.

They should be processing a whole load of delayed drilling data which was due in March. It needs to at least re-affirm previous findings and at best deliver some positive surprises.

[scotswhaehae] 03/4/2008 08:23

umair...

you are right about the quarter just finished...but what about this next quarter?!

could well be that seasonal factors play their part and that by the end of this quarter (which was the one I made clear I was talking about in post 200) cash headroom will be much tighter than ZRL would like...

we shall see...

[umair] 02/4/2008 11:03

From January's cashflow statement it would seem that they have about GBP 6.5M available at the end of the last quarter with plans to spend GBP 1M this quarter. So cashflow shouldn't be a problem.

-------------------------------------------------------------------

Estimated cash outflows for next quarter

GBP '000
4.1 Exploration and evaluation
1,000
4.2 Development

Total 1,000



Reconciliation of cash

Reconciliation of cash at the end of the quarter Current quarter Previous quarter
(as shown in the consolidated statement of cash
flows) to the related items in the accounts is as GBP '000 GBP '000
follows.

5.1 Cash on hand and at bank 985 2,862

5.2 Deposits at call 5,569 8,875

5.3 Bank overdraft

5.4 Other (provide details)

Total: cash at end of quarter (item 1.22) 6,554 11,737

[ramnik007] 02/4/2008 08:14

The burn rate this drill season is likely to be substantially lower as mgt plan to be drilling only with partner(s) money. According to mgt they have adequate cash till next year.

Apparently Rio Tinto will be making a decision on drilling in the coming months, with comittment of decent cash.

[stu31] 01/4/2008 16:42

I estimate they have about 1 month of cash left scots if past spend is anything to go by..undoubtedly they are trying to get a funding away in the city right now and are struggling imo..their cash burn looks excessive for a small cap explorer, particularly the admin expenses..£4m per year? That has to be something of a record in their peer group imo

[umair] 01/4/2008 12:15

Interesting options announcement. Maybe an incentive for employees to stay on through a difficult time, or management giving themselves a bonus in preparation for an anticipated spike on news ;-) Maybe a little too hopeful.

Should be some news soon. Need to have something solid around Cu/Ag/Uranium.

[scotswhaehae] 01/4/2008 12:10

indeed stu31...

seriously affected by the credit crunch/investor general fears I expect.

shame as on (well funded) fundamentals this looks a good company.

with no cash injection would you agree that it looks like it runs out of cash in the next quarter according to last announced exploration expenditure rates?

no doubt another placing can be arranged though...will be interesting to see at what price.

[stu31] 01/4/2008 01:19

check the last accounts..see how much cash they are burning and how much they have left..

[nooption] 31/3/2008 21:34

Hi Andy dont know anymore than you but lonro down as well election results not popular maybe?

[andy] 31/3/2008 20:46

Doea anone know the reason for the sudden fall today pls?

[grimbo] 27/3/2008 22:01

Have to admit my trailing stop loss got hit a while back. Certainly does look like a bargain if there is no nasty news - and we surely should be due an update soon.

[asmagliocco] 27/3/2008 10:09

Trading volumes or current commodity prices don't justify this degree of fall-off. Anyone know if some nasty news is lurking?

[umair] 26/3/2008 09:40

The recent share price weakness seems to be in line with recent commodity and metal price declines. They have come back strongly this week.

Come on Zambezi... where are those results... has got to be some time soon.

[umair] 29/2/2008 14:21

These seem to have drifted down on lack of news flow and on delays.

They set expectations that we should get some more assay results on the Kangaluwi prospect at the end of March. That's probably the next major news we can expect.

[devpatel] 28/2/2008 21:18

thebull3...from memory, in the last update around jan, they mentioned that they would be updating the resource estimate on Cheowa, they were also going to provide details on the drilling that is being done at Kangaluwi and the other sites. we know that all the essay lab results are/were late due to the delays in the labs...so i for one hope there is going to be some interesting grades/figures being mentioned.

[thebull3] 28/2/2008 07:41

Am i right in saying this share price is below the recent placing price, havent looked at this for a while but just noticed it seems rather good value at the moment, any thoughts on positive news that might be coming soon?

[umair] 27/2/2008 16:48

I'm sure there are a few of us watching !

[aspers] 26/2/2008 10:36

tasc....hi, nice to know I am not alone out here!!

[ramnik007] 26/2/2008 10:07

Read that the IMF agree on Zambian Gvt request to increase mining royalty from very low % to international standards of approx 3%, and the extra revenue will help pay for building more power stations. There has been an air of confusion when the Govt mentioned a review on mining royalties and company tax. However, it will only be at international levels.

[tasciovanus] 26/2/2008 09:35

Watching and waiting aspers.....watching and waiting!

[aspers] 26/2/2008 08:32

First bit of blue for a few weeks......very quiet on this BB, anyone else out there???

[umair] 31/1/2008 10:17

Also cash position doesn't seem too bad GBP 6-7M at call and estimated GBP1M spend next quarter (despite huge spend last quarter).

[clearsoup] 30/1/2008 12:17

See footnote to today's (positive) Cheowa drilling results: Co sees Kangaluwi as "potentially world class open pit copper deposit".