What’s Happening With QEM?

QEM Limited (ASX:QEM) is a small-cap stock with a market capitalization of AU$12m. While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. QEM Limited recently raised capital and its most recent quarterly cashflow statement says that it holds over $5 million in IPO funds in trust. Once this money belongs to QEM, it will be funded to pursue its near-term business opportunities. As at 30 June 2018, it did show cash of $600,000 and debt of $1 million. The IPO funds will change that, however. QEM is a vanadium miner with big plans for the future,. It plans to use its cash for exploration and development. Eventually it would like to see its tenement developed into an open pit mine. Building that mine will require more capital or new partners. Historical Performance: What has QEM’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.