PP in the works?
PEREGRINE DIAMONDS LTD.
Filed SEADR Today
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MANAGEMENT'S DISCUSSION AND ANALYSIS OF' FINANCIAL CONDITION AND RESULTS OF OPERATIONS Year Ended September 30,2008
LIQUIDITY AND CAPITAL RESOURCES
At September 30, 2008, the Company had a working capital balance of $1.6 million and cash resources of $2.1 million. Accounts receivable at September 30, 2008 consist primarily of refundable GST, and amounts receivable from Peregrine Metals Ltd. for shared office facilities and personnel. All amounts are current and either have been or are expected to be received during the forthcoming quarterly period.
During the year ended September 30, 2008, the Company spent $14.8 million on operations and $363,000 on mineral property payments and capital asset acquisitions. Cash inflows during the year consisted of $10.7 million from the sale of the Company's shares, $121,000 from the sale of investments and capital assets and an aggregate of $590,000 from the refund of property payments and from the refund of a letter of credit held in security for the demobilization of drill rigs at DO-27.
At December 10, 2008, the Company had a working capital balance of approximately $700,000.
Budgeted expenses for 2009 are estimated to be $14.5 million, consisting of exploration expenditures of $13 million and general and administrative and capital expenditures of $1 -5 million.
On November 24, 2008, the Company announced that BHP Billiton had elected to exercise their back-in rights on the Chidliak property on Baffin Island. Under the terms of this back-in BHP
Billiton will be responsible for approximately $1 0 million of the estimated exploration expenditures for 2009. In addition, as the operator of the project for 2008 and based on the foregoing budgeted exploration expenditure assumptions, the Company will receive a management fee of approximately $700,000 which will partially offset administrative costs during 2009.
It is estimated that net expenditures incurred by the Company during 2009 will be approximately $4 million.
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