On 28 November 2018, Ardiden Limited (ASX: ADV) feels happy to disclose the successful progress of the company towards its resource expansion and its exploration diamond drilling program. At present, there were eight drill holes made at the project site from ASD012 to ASD019. Out of these eight drill holes, the company has shared the results of 4 drill holes.
At its ASD012 drill hole, a further drilling of 17.91 meters was done from its earlier excavation of 126.95 meters which led to the discovery of 0.85% Li2O.
At its ASD013 drill hole, another 12.28 meters of drilling was done from its earlier excavation of 126.20 meters which led to the discovery of 1.03% Li2O.
At its ASD017 drill hole, there were two drillings done. The first drilling was of 15.06 meters from its earlier excavation of 112.50 meters which led to the discovery of 1.11% Li2O. The second drilling was of 1 meter from its earlier 121.50 meters excavation which led to the discovery of 4.26% Li2O.
At its ASD019 drill hole, another drilling of 5.02 meters from its earlier excavation of 168.55 meters led to the discovery of 0.67% Li2O.
The outcome of the drilling was that it led to the intersection of multiple spodumene-bearing pegmatites. The results at North Aubry were very encouraging and of high-grade. This project forms the foundation of premium quality of lithium mineralization at Seymour Lake.
The other strategic partners associated with Ardiden is working on the metallurgical test work for the optimal recovery of high-grade mineralization at Seymour Lake. The strategic partner working on this is Yantai Jinyuan Mining Machinery Co., Ltd.
The company is a consistent negative performer since inception. Since its inception, the performance of the company is -98.63%. In the one-year duration of the company, the performance of the company is -69.44%.
For the year ended 30 June 2018, the net loss of the company is $2,755,449. However, the balance sheet of the company is strong. The net asset of the company is $13,920,596 which and the total current asset of the company is $7,151,247 and the total current liabilities is $564,646 which indicates that the company is in the position to meet its short-term obligation as well as the net working capital. However, the company has raised capital through shares which resulted in the net shareholder’s equity worth $13,920,596 which indicates the poor operating performance of the company.
From the operating activities of the company, the net cash outflow was $1,015,248. Under this category, the major source of cash outflow was due to the payment made to the suppliers and the employees. From the investing activities of the company, the net cash outflow from the investing activities was $4,227,526. Here the major source of cash outflow was due to the payment made in the form of exploration expenditure as well as payment made for plant and equipment. From the financing activities of the company, the net cash inflow was $10,674,752.
By the end of the day, the market price of the share increased by 20% and closed at A$0.006 with the market capitalization of A$8.38 million.