Power producer and developer Rurelec said it only has enough cash to stay afloat until the middle of the second quarter in a trading update which saw shares fall 18% to 0.45p.
Cash in the bank as of 31 December was £400,000, with the company expecting this to run out in the middle of the second quarter of this year based on the current cash burn.
Rurelec said that there has been no further receipt of cash from its operations in Argentina.
Additionally, the AIM-quoted company said the macroeconomic situation in Argentina is not favourable to Energia del Sur, which owns and operates the 136MW Southern Patagonia CCGT power plant.
Rurelec has a majority interest in Energia del Sur and, consequently, it is unlikely to receive any dividends from its shareholding in the short term.
Directors also have no authority to issue new shares to generate cash, with the majority shareholder at the current time unwilling to seek a resolution to allow the issuance of new shares.
However, Rurelec said there has been “continued interest” in some of the company’s major assets, which it is seeking to dispose of.