Artemis Resources (ASX:ARV) - Non Executive Director, Edward Mead
Non Executive Director, Edward Mead
Source: Artemis Resources
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  • Junior explorer Artemis Resources (ARV) says it has a strong balance sheet to weather COVID-19 disruption to business operations
  • While the company claims impacts of the virus so far have been limited, its $2.2 million cash balance gives Artemis almost three more quarters of cashflow
  • However, Artemis also holds $5 million worth of Novo Resources shares, giving the company a comfortable fall-back
  • Over the March quarter, Artemis was still able to complete some major drilling and geochemistry programs at its key projects
  • Shares in Artemis gained almost eight per cent today to close worth 2.8 cents each

Junior gold and copper explorer Artemis Resources (ARV) is touting a strong balance sheet to weather limited COVID-19 disruption to business operations.

The company gave shareholders the big picture of operations over the March quarter in an activities report today.

With the coronavirus gripping global markets and at the forefront of investor concerns, the company was quick to point out its $2.2 million cash balance to stay healthy during the pandemic.

With just $779,000 cash burn over the quarter, this gives Artemis just under three more quarters of available cash at current spending levels.

However, over the quarter Artemis sold two tenements to Canadian Venture Exchange (CVE)-listed Novo Resources for $0.82 million in cash and 1.64 million Novo shares.

The value of these shares currently sits at $5 million, meaning Artemis has a comfortable fall-back should the business impacts from COVID-19 worsen.

Coronavirus cost cuts

Nevertheless, Artemis is joining the ranks of companies slashing costs dramatically while the coronavirus spreads.

Artemis said the impact of the virus on the company has been limited so far, given Artemis’ exploration projects are based in Western Australia, where the virus’ spread has been largely contained.

However, erring on the side of caution, the Artemis Board has made the call to slash Directors’ paychecks by 40 per cent as part of the effort to reduce overhead costs.

Still drilling

Artemis was still able to complete 31 reverse circulation (RC) drill holes at its Carlow Castle gold-copper-cobalt project, for a total of 3716 metres.

Assays are yet to be received, but Artemis said results are on the way “soon”. Once received, Artemis will start planning a follow-up drill program.

As for the Patersons Central gold-copper project, Artemis took on a geochemistry program over the quarter to test seven potential drilling targets.

While investors are likely happy to wait until assay and geochemistry results have been released before making any major decisions, Artemis shares still gained a healthy 7.69 per cent today.

At market close, shares are worth 2.8 cents each.

ARV by the numbers
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